Asked by
Tayseer Afifi
on Dec 08, 2024
Verified
Marginal cost is equal to ________ when ________ is minimized.
A) average fixed cost; average fixed cost
B) average variable cost; average fixed cost
C) average total cost; average variable cost
D) average variable cost; average variable cost
Marginal Cost
The expenditure related to manufacturing one more unit of a product or service.
Average Fixed Cost
The total fixed costs of production divided by the quantity of output produced, showing how fixed costs change with output levels.
Average Variable Cost
The total variable cost divided by the number of units produced, reflecting the variable cost of producing each additional unit.
- Utilize the concept of marginal costs to inform business production decision-making processes.
- Comprehend the computation and importance of average expenses, including average fixed costs, average variable costs, and average total costs.
Verified Answer
SM
Learning Objectives
- Utilize the concept of marginal costs to inform business production decision-making processes.
- Comprehend the computation and importance of average expenses, including average fixed costs, average variable costs, and average total costs.