When average total cost is at its minimum a.marginal cost is equal to average fixed cost. b.average variable cost is decreasing. c.marginal cost is equal to average total cost. d.average total cost is equal to average variable cost

When average total cost is at its minimum a.marginal cost is equal to average fixed cost. b.average variable cost is decreasing. c.marginal cost is equal to average total cost. d.average total cost is equal to average variable cost

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 6SQP

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Question

When average total cost is at its minimum

a.marginal cost is equal to average fixed cost.

b.average variable cost is decreasing.

c.marginal cost is equal to average total cost.

d.average total cost is equal to average variable cost.

Definition Definition Measure of the cost of production per unit of output, including only variable costs such as wages, materials, and utilities. AVC is calculated by dividing total variable cost by the number of units produced. Understanding average variable cost is important for businesses to make decisions on pricing, production levels, and profitability.

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