Asked by
Shae' Patterson
on Dec 11, 2024Verified
If variable cost at each output level doubles,
A) ATC doubles.
B) AFC doubles.
C) MC remains unchanged.
D) MC doubles.
E) MC less than doubles.
Variable Cost
Costs that change in proportion to the level of goods or services that a business produces.
ATC
Average Total Cost, which is the sum of all production costs divided by the quantity of output produced.
MC
Marginal Cost, the change in total production cost that comes from making or producing one additional unit.
- Understand the concept of variable and fixed costs and their implications on total cost.
- Analyze the effects of changing output levels on marginal and average costs and their interrelationships.
Verified Answer
SS
Learning Objectives
- Understand the concept of variable and fixed costs and their implications on total cost.
- Analyze the effects of changing output levels on marginal and average costs and their interrelationships.