Average variable cost equals

A) fixed cost divided by output.
B) total variable cost divided by output.
C) marginal cost divided by output.
D) marginal cost plus fixed cost.
E) marginal cost multiplied by output.

B

Economics

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The Congressional Budget Office estimates that most of the increase in federal spending on Medicare and Medicaid will be due to

A) increases in immigration. B) the aging population. C) declining income levels. D) increases in the cost of providing health care.

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Under perfect competition, existing firms leave the market in the long run if the price falls below total fixed cost

a. True b. False Indicate whether the statement is true or false

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