Average Variable Cost Is the Ratio Of

question 80

Multiple Choice

Average variable cost is the ratio of:

• A)total cost to the marginal cost.
• B)variable inputs to fixed inputs.
• C)variable cost to the quantity of output.
• D)fixed costs to variable cost.

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Definitions:

Business Cycle

Periodic fluctuations in economic activity, such as growth and recession.

Recovery

A period of economic improvement following a recession or downturn.

Trough

The lowest point in an economic cycle, marking the transition from recession to recovery.

Peak

The highest point reached by a commodity or market price before a decline.