Statement I: Average Total Cost Less Average Fixed Cost Equals

question 95

Multiple Choice

Statement I: Average total cost less average fixed cost equals average variable cost.
Statement II: At an output of one,average total cost is equal to total cost.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

---

Definitions:

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution or parameter estimation.

Independent Populations

Populations in which the members or outcomes of one group do not influence or are not related to the members or outcomes of another group.

Equal Variances

An assumption in some statistical tests that the variances in the groups being compared are similar.

Normally Distributed

A symmetric probability distribution centered around the mean, demonstrating that occurrences near the mean happen more often than those at a distance.