The Study of Individual Choices and Group Behavior in Individual

question 90

Multiple Choice

The study of individual choices and group behavior in individual markets defines:

• A) microeconomics.
• B) economics.
• C) the scarcity principle.
• D) macroeconomics.

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Definitions:

Average Variable Cost

The variable cost (costs that change with production volume) divided by the quantity of output produced.

Marginal Cost

The increase or decrease in the total cost incurred by producing one additional unit of a product or service.

Total Variable Costs

The sum of expenses that vary directly with the level of output production.

Average Total Cost

The per unit cost of production, calculated by dividing total cost by the total quantity of output produced.