Average Variable Cost Can Be Calculated Using Any of the Formulas

question 85

Multiple Choice

Average variable cost can be calculated using any of the formulas below except

• A)TVC/Q.
• B)(TC - FC)/Q.
• C)Δ(TC - FC)/ΔQ.
• D)(TC/Q)- AFC.

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Definitions:

Isocost Line

A graphical representation showing all combinations of inputs (like labor and capital) that cost the same amount for a firm.

Capital

Economic resources that are used in the production of goods and services, typically including financial assets and physical machinery.

Labor

The body of physical and mental effort used in the production of goods and services.

Isocost Line

A graphical representation showing all possible combinations of inputs that cost the same amount.