Examlex
Which of the following positioning combinations makes the most sense?
Average Total Cost
The total cost divided by the quantity of output produced, representing the cost per unit of output.
Marginal Cost
The outgoings associated with the production of one more unit of a product or service.
Average Variable Cost
The total variable costs divided by the quantity of output produced; it varies with the level of output.
Long-Run Average Total Cost Curve
A graphical representation showing the relationship between output and average total cost when fixed cost has been chosen to minimize average total cost for each level of output.
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