Average Fixed Cost Can Be Calculated Using Any of the Formulas

question 245

Multiple Choice

Average fixed cost can be calculated using any of the formulas below except

• A)TFC/Q.
• B)(TC - VC)/Q.
• C)Δ(TC - VC)/ΔQ.
• D)(TC/Q)- AVC.

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Definitions:

Natural Rate

The natural rate is a concept in economics describing conditions where the economy is at equilibrium, with full employment and no inflationary or deflationary pressures.

Aggregate Supply

The aggregate amount of products and services that companies in an economy are prepared and able to offer at a specific general price level during a certain time frame.

Natural Rate

Refers to the equilibrium rate of unemployment or interest where the economy is stable, without accelerating inflation.

Unemployment

The situation in which individuals who are capable of working and actively seeking work are unable to find employment.