Define Price Discounts and List and Describe the Types

question 3

Essay

Define price discounts and list and describe the types.

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Definitions:

Average Variable Cost

The total variable cost divided by the number of units produced, representing the average cost per unit of output that varies with production.

Average-Fixed-Cost Curve

A graphical representation that shows the average fixed costs of production at different levels of output.

Average-Total-Cost Curve

Graphical representation that shows how the average total costs of production change as the quantity of output is altered.

Average-Fixed-Cost Curve

A graphical representation that shows how the average fixed costs of production decrease as the quantity of output increases, due to spreading fixed costs over a larger number of units.