Average Total Cost Is Equal to

question 168

Multiple Choice

Average total cost is equal to

• A)output/total cost.
• B)total cost - total quantity of output.
• C)average variable cost + total fixed cost.
• D)total cost/output.

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Definitions:

Income Distribution

The way in which total income is divided among the members of a society.

Marginal Contribution

The additional amount of revenue or benefit generated by utilizing one more unit of a resource or producing one additional unit of a product.

Complementary Resources

Assets or inputs that enhance the value or performance of another asset or input when used in conjunction, such as gasoline for cars or software for computers.

Price of Capital

The cost associated with acquiring capital, including the interest or dividends paid to access funds or the rental rates paid for physical capital.