Which of the Following Measures of Cost Is Best Described

question 155

Multiple Choice

Which of the following measures of cost is best described as "the cost of a typical unit of output if total cost is divided evenly over all the units produced?"

• A)average fixed cost
• B)average variable cost
• C)average total cost
• D)marginal cost

Interpret the meaning and application of shading and Xs in Venn diagrams.

Distinguish among different types of categorical propositions using Venn diagrams.

Recognize the relationship between existential import and Venn diagrams.

Analyze and apply concepts of immediate inference, including converse, obverse, and contrapositive.

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Definitions:

Sunk Costs

Costs that have already been incurred and cannot be recovered or altered by any current or future actions.

Unproductive

Refers to resources or activities that do not contribute to the output or efficiency of a process or operation.

Fixed Costs

Costs that do not change in total with changes in the volume of production or sales, such as rent, salaries, and insurance.

Relevant

Pertaining to something that is closely connected or appropriate to the matter at hand, especially in decision making or problem-solving.