If We Know Average Total Cost and the Amount of Output

question 386

Multiple Choice

If we know average total cost and the amount of output, then we can always calculate total cost by

• A) adding average total cost and the amount of output.
• B) subtracting the amount of output from average total cost.
• C) multiplying average total cost by the amount of output.
• D) dividing average total cost by the amount of output.

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Definitions:

Expected Rate

An anticipated return on investment, often based on historical data or forecast models, that investors use to make decisions.

Interest Rate

The amount charged by a lender to a borrower for the use of assets as a percentage of the principal.

Profit

Profit denotes the financial gain achieved when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Capital Goods

Long-lasting goods acquired or created by businesses to produce other goods or services, including machinery, buildings, and equipment.