SAPLINGPLUS ACCESS MICRO 1 TERM
4th Edition
ISBN: 9781319319038
Author: KRUGMAN
Publisher: MAC LTD
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Question
Chapter 11, Problem 9P
To determine
Average Variable Cost - Average Fixed Cost
Average Total Cost - Marginal Cost
- Level of output at which Average Total Cost is minimised
To Draw:
- AVC, ATC, MC
curves
Concept Introduction:
- Average Variable Cost (AVC) − It is the variable cost for every unit produced. It varies with the level of production and is determined by dividing the total variable cost by the number of units produced.
- Average Fixed Cost (AFC) − It is the fixed cost for every unit produced. It does not vary with the level of production and is determined by dividing the total fixed cost by the number of units produced.
- Average Total Cost (ATC) − It is the total cost for every unit produced. It is the sum of fixed and variable cost and is determined by dividing the total cost by the number of units produced.
- Marginal Cost (MC) − It is the cost of producing every additional unit.
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SAPLINGPLUS ACCESS MICRO 1 TERM
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