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Match the Classifications of Ratios with Each Description

question 137

Multiple Choice

Match the classifications of ratios with each description.
-Measures the earning ability of a company


Definitions:

Marginal Cost

The charge for generating one more unit of a good or service.

Total Variable Cost

Total variable cost is the sum of all costs that vary directly with the level of production or output, such as materials and labor.

Marginal Cost

The added cost of producing one additional unit of a product or service.

AVC

Average Variable Cost, calculated by dividing total variable cost by the quantity of output produced.

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