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Virty [35]
3 years ago
10

Which of the following expressions is correct? Select one: a. marginal cost = (change in quantity of output)/(change in total co

st) b. average total cost = total cost/quantity of output c. total cost = variable cost + marginal cost d. average variable cost = quantity of output/total variable cost
Mathematics
1 answer:
Natasha_Volkova [10]3 years ago
3 0

Answer:

b. average total cost = total cost/quantity of output

Step-by-step explanation:

The marginal cost is the additional cost of producing one more unit of output and it can be calculated by taking the change in total cost and dividing it by the change in quantity, its formula is:

  • <em>Marginal cost = change in total cost/ change in quantity</em>

The average total cost (sometimes referred to simply as average cost) is total cost divided by the quantity of output, its formula is:

  • <u><em>Average total cost = total cost / quantity of output</em></u>

The total cost is obtained adding together the fixed costs and the variable costs, its formula is:

  • <em>Total cost = fixed cost + variable cost</em>

The average variable cost is obtained when variable cost is divided by quantity of output, its formula is:

  • <em>Average variable = variable cost / quantity of output</em>

I hope you find this information useful and interesting! Good luck!

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