Average Variable Cost Is

question 36

Multiple Choice

Average variable cost is

• A)the ratio of total variable cost to the quantity of output produced.
• B)the ratio of variable cost to total cost.
• C)the ratio of variable cost to fixed cost.
• D)the difference between variable and fixed cost.

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Definitions:

Money-Supply Curve

A graphical representation showing the relationship between the quantity of money in the economy and the price level or interest rate.

Federal Reserve

The central banking system of the United States, responsible for setting monetary policy, regulating banks, maintaining financial stability, and providing financial services to depository institutions, the U.S. government, and foreign official institutions.

Interest Rate

The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal.

Excess Supply

A situation in which the quantity of a good or service supplied is greater than the quantity demanded at the current price, leading to surplus stock.