Question

The statements and equations show various ways of defining average variable cost, marginal cost, and average total cost. TC is used 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.

Answer 1

COMPLETE QUESTION:

The statements and equations below show various ways of defining average variable cost, marginal cost, and average total cost. Below, TC is used 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.

Average Variable Cost Marginal Cost Average (Total) Cost

The amount by which total cost increases when an additional unit is produced

Total cost divided by quantity of output

Change in the total cost divided by change in output

VC / Q

The sum of all costs that change as output changes divided by the number of units produced.

TC / Q

ΔTC/ΔQ

Answer and Explanation:

Marginal Cost is the value by which total cost increases when more units are produced.

Marginal Cost = VC / Q

Average Variable Cost is the cost per the quantity of output. It is the difference in the Total Cost per change in output.

Average Cost is the addition of all costs that change due to changes in output per the number of units produced.

TC / Q= Variable Cost

ΔTC/ΔQ= marginal cost

Answer 2

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