Average Variable Cost Equals

question 75

Multiple Choice

Average variable cost equals

• A)average total cost minus average fixed cost.
• B)total variable cost divided by the change in output.
• C)total variable cost divided by output.
• D)price of the variable input times the quantity of the variable input.
• E)a and c

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Definitions:

Purchase Price

The amount of money paid to buy a good, service, or asset.

Perpetuity

A financial instrument that provides indefinite payments at fixed intervals, theoretically lasting forever.

Compounded Monthly

The process where interest is calculated on a monthly basis and added to the principal, allowing it to earn interest in subsequent months.

Perpetuity

A type of annuity that pays an infinite series of payments, continuing indefinitely.