Which One of the Following Is the Ratio of Actual

question 65

Multiple Choice

Which one of the following is the ratio of actual output from factories to potential output from factories?

• A) Capacity utilization
• B) Participation rate
• C) Durable goods orders
• D) Industrial production

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Definitions:

Average Total Cost

This is the sum of all the costs of production (fixed and variable) divided by the number of units produced, providing a comprehensive understanding of production expenses.

Market Price

The price at which a good or service is offered in the marketplace, determined by supply and demand.

Economic Profit

The difference between the total revenue received from the sale of an output and the total opportunity costs of the inputs used.

Average Variable Cost

The total variable costs (costs that change with the level of output) divided by the quantity of output produced.