Total Fixed Cost Divided by the Level of Output Yields

question 50

Multiple Choice

Total fixed cost divided by the level of output yields the _____

• A)average variable cost per unit.
• B)average fixed cost per unit.
• C)marginal cost per unit.
• D)average total cost per unit.
• E)marginal productivity per unit of fixed resource.

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Definitions:

Marginal Product

The additional output produced as a result of adding one more unit of a specific input, keeping all other inputs constant.

Additional Output

The extra quantity of output produced as a result of increasing the level of input by one unit.

Unit of Labor

A measurement of work or effort by an employee or worker.

Labor Supply

The total hours that workers are willing and able to work at a given wage rate in a specific period.