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All of you taking this course have e-mail, even if it is only the student account issued by the college or university, and probably check it multiple times a day, but think about the average user. Which of the following statements would be FALSE?
Average Variable Cost
The total variable costs of production divided by the quantity of output produced.
Total Variable Cost
The sum of expenses that vary directly with the level of production or sales volume.
Variable Costs
Costs that change in proportion to the level of activity or volume of production.
Fixed Costs
Costs that do not vary with the level of output or sales, such as rent, salaries, and insurance payments.
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