Average Variable Cost Is

question 172

Multiple Choice

Average variable cost is:

• A)the firm's variable cost per unit multiplied by the output.
• B)total variable cost divided by output.
• C)the difference between average total cost and total variable cost.
• D)the difference between total cost and total variable cost.

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Definitions:

Accounting Profits

The financial gain calculated by subtracting total explicit costs from total revenue, according to standard accounting practices.

Industry Expansion

The growth in production, workforce, or market share within a specific sector of the economy.

Constant-cost Industry

An industry in which the costs of production or the prices of inputs do not change as the industry expands or contracts.

Entry or Exit

The process of a firm beginning operations in a market (entry) or leaving a market (exit), influenced by factors like profitability and barriers to entry.