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Figure 18.2
Using the figure above, identify the labeled structure(s) in each of the following questions.
-Identify the structure(s) indicated by Label H.
Marginal Cost
The additional financial cost due to the creation of an extra product or service unit.
Average Total Cost
The average total cost is the total cost of production divided by the quantity of output produced.
Marginal Cost Curve
A visual diagram that illustrates the variation in the cost to produce an additional unit of a product as the quantity produced changes.
Average Total Cost Curve
A curve that shows the average cost per unit of output at different levels of production; it typically has a U-shape.
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