Examlex
Qualitative designs are most interested in understanding which of the following?
Average Variable Cost (AVC)
The variable cost of production divided by the number of units produced, reflecting the cost per unit excluding fixed costs.
Average Fixed Cost (AFC)
A firm’s total fixed cost divided by output (the quantity of product produced).
Marginal Cost (MC)
The extra (additional) cost of producing 1 more unit of output; equal to the change in total cost divided by the change in output (and, in the short run, to the change in total variable cost divided by the change in output).
Total Cost
The sum of all costs incurred by a business in the production of goods or services, including both fixed and variable costs.
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