Average Total Cost Is Equal to

question 170

Multiple Choice

Average total cost is equal to

• A)average fixed cost minus average variable cost.
• B)total cost divided by the level of output.
• C)marginal cost plus variable cost.
• D)total cost divided by the number of workers.

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Definitions:

Allowances

Financial or material provisions made to cover a specific need, expense, or reduction in price.

Rent

A periodic fee paid by a tenant to a landlord for the use of property, such as real estate or equipment.

Interest

The cost of borrowing money or the profit earned from lending money, typically expressed as a percentage of the principal amount per year.

Considerations

Factors or aspects that need to be taken into account before making a decision or evaluation.