Average Variable Costs Equal

question 21

Multiple Choice

Average variable costs equal

• A) total variable costs divided by marginal costs.
• B) total variable costs divided by output.
• C) the change in marginal costs from producing another unit of output.
• D) output divided by the change in total costs.

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Definitions:

Minimum Wage

The hourly rate that federal law allows as the least hourly rate to be paid to an employee in the United States.

Hourly Rate

The amount of money paid for each hour of work performed, typically used as a measure of compensation for part-time or contract employees.

FICA Taxes

Taxes collected in the United States to fund Social Security and Medicare, typically deducted from employees' paychecks.

Taxable Income

The portion of an individual's or corporation's income used as the basis for calculating how much tax is owed.