At One Unit of Output AVC Is

question 26

Multiple Choice

At one unit of output AVC is

• A)zero.
• B)infinite.
• C)equal to marginal cost.
• D)less than marginal cost.

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Definitions:

Mixed Cost

A cost that contains both variable and fixed cost elements, changing in total with changes in activity level but not in the same proportion.

Electrical Cost

The financial outlay for electricity usage, often a significant part of operational expenses for businesses and households alike.

Contribution Margin

A financial metric that represents the difference between a company's sales revenue and its variable costs. It is used to analyze the profitability of individual products.

Monthly Sales Volume

Refers to the total number of units sold or services rendered in a month.