Which of the Following Formulas Defines Average Cost

question 159

Multiple Choice

Which of the following formulas defines average cost?

• A)AC = TC/Q
• B)AC = MRP = MFC
• C)AC = MPP/Q
• D)AC = TC - Q

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Definitions:

Prices

The amount of money required to purchase a good or service, reflecting its value in a monetary term.

Inflation Rate

The rate at which the overall cost of goods and services rises over a given time frame.

Base Year

A reference year against which economic growth, inflation, or other economic indicators are measured.

Quantities

The amount or number of a material or item measured or produced.