Average Cost Equals

question 42

Multiple Choice

Average cost equals

• A)change in total cost/change in quantity.
• B)total cost/quantity.
• C)total cost − total variable cost.
• D)total cost − total fixed cost.

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Definitions:

Opportunity Cost

Overlooking possible gains from other alternatives by dedicating to one path.

Information

A collection of data that is processed, organized, and interpreted to provide value and understanding to the recipient.

Marginal Cost

The extra charge resulting from the production of one more unit of a product or service.

Sushi Restaurant

A dining establishment that specializes in the preparation and serving of sushi, a traditional Japanese dish featuring vinegared rice combined with various ingredients, including seafood and vegetables.