Average cost is

total cost ÷ output, which equals AFC + AVCCorrect answerYour answerthe change in total cost from one more unitCorrect answerYour answertotal fixed cost ÷ outputCorrect answerYour answertotal cost × outputCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

AC = TC ÷ q = (TFC + TVC) ÷ q = AFC + AVC.

Worth noting

TFC ÷ output alone is average fixed cost, one part of AC.

Concept: Average cost
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsAverage and marginal cost

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Average cost is

Explanation