Average Total Cost Equals

question 353

Multiple Choice

Average total cost equals

• A) TC/Q.
• B) TVC/Q.
• C) TFC/Q.
• D) change in total cost/change in output.

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Definitions:

Production Techniques

The methods or processes used in the creation or manufacture of goods and services.

Costs

The expense required for something; the money spent on or needed for a project, product, or service.

Profit-Seeking Decision Maker

An individual or entity focused on making decisions that are expected to result in the highest possible profit.

Entrepreneur

An individual who organizes and operates a business venture, taking on greater than normal financial risks in order to do so.