A Statement That Makes Clear How Something Is Done or Why

question 26

Multiple Choice

A statement that makes clear how something is done or why it exists in its present or past form is known as

• A)a definition.
• B)an explanation.
• C)an image.
• D)an analogy.

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Definitions:

AFC

Average Fixed Costs, which represent the fixed costs per unit of output, calculated by dividing total fixed costs by the number of units produced.

AVC

Average Variable Cost (AVC) is the total variable costs of production divided by the quantity of output produced, reflecting the cost per unit of varying the level of output.

ATC

Average Total Cost, which is the total cost of production divided by the number of goods produced.

Variable Costs

Costs that change in proportion to the level of activity or volume of production in a business.