The Price of a Single Piece of a Product Which

question 106

Multiple Choice

The price of a single piece of a product which is equal to the price less the variable cost per unit is called the:

• A)break-even point.
• B)variable costs.
• C)contribution per unit.
• D)demand curve.
• E)fixed costs.

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Definitions:

Average Fixed Cost

The constant expenses associated with production, which remain unaffected by the amount of goods produced, divided by the number of items made.

Average Variable Cost

The total variable cost of production divided by the quantity of output produced.

Average Total Cost

The total cost of production divided by the quantity of output produced, illustrating the average cost per unit of output.

Cost Curve

A graphical representation showing how the cost of producing a good changes with changes in the quantity of the good produced.