Average Total Cost Is

question 12

Multiple Choice

Average total cost is:

• A) the change in cost divided by the change in quantity.
• B) total cost divided by quantity.
• C) the change in quantity divided by the change in costs.
• D) total cost times quantity.

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Definitions:

Decrease

A reduction in quantity, size, intensity, or the number of something.

Equilibrium Price

The price at which the quantity of goods supplied equals the quantity of goods demanded, leading to market balance.

Perfectly Elastic

A situation where a small price change results in an infinite change in the quantity demanded or supplied.

Supply

The total amount of a good or service available for purchase at any given price level in a market.