Which of the Following Best Describes Average Cost

question 29

Multiple Choice

Which of the following best describes average cost?

• A)The per-unit-of-output cost for a product at a given quantity
• B)The incremental cost of producing one more unit of output.
• C)A cost invariant to the firm's output
• D)The sum of all costs associate with the production of a product
• E)The cost of fixed items such as general and administrative expenses

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Definitions:

Evaluate

To assess or determine the value, significance, or worth of something through analysis or examination.

Simplify

The process of making an expression, equation, or fraction as straightforward as possible by reducing it to its basic form.

Evaluate

To assess or determine the value, significance, or condition of something through careful analysis.

Algebraic Expression

A mathematical phrase that includes numbers, variables, and operation symbols but does not contain an equal sign.