The statements and equations show various ways of defining average variable cost, marginal cost, and average total cost. TC is u
sed to abbreviate total cost, VC is used to abbreviate variable cost, and Q is used to abbreviate quantity. Classify each statement or equation according to whether it describes average variable cost, marginal cost, or average (total) cost.
2 answers:
Answer:
Hi your question lacks the required statements and equations hence attached to this answer is the complete question
- Total cost divided by quantity of output = Average cost ( TC /Q )
- Change in total cost divided by change in output = Average variable cost ( VC/Q )
- The amount by which total cost increase when an additional unit is produced = Marginal cost ( ΔTC / ΔQ )
- The sum of all costs that changes as output changes = Variable cost
Explanation:
Marginal Cost is the cost incurred by company for the production of an additional unit of a commodity already produced
Marginal Cost is represented = ΔTC /ΔQ
Average Variable Cost is the total variable cost incurred per unit of an output of goods and service rendered
Average variable cost is represented = VC /Q
Average Cost is the cost incurred in the production of a single unit of the total goods or services produced
Average cost is represented as = TC / Q
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