Which of the Following Best Describes Average Variable Cost

question 124

Multiple Choice

Which of the following best describes average variable cost?

• A) The change in total cost when one additional unit of output is produced.
• B) Total cost divided by the quantity of output produced.
• C) Total variable cost divided by the quantity of output produced.
• D) Total fixed cost divided by the quantity of output produced.
• E) Costs that do not vary as output varies.
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Definitions:

Bankers

are individuals or entities engaged in the business of dealing with money, lending, exchanging, and safeguarding funds.

Inflation

The rate at which the general level of prices for goods and services rises, eroding purchasing power over time.

Securities Act of 1933

is a U.S. law enacted to protect investors by requiring transparency in the financial statements of publicly traded companies.

Wall Street

A street in Lower Manhattan that is the original home of the New York Stock Exchange and represents the financial and investment community in the United States.