--%>

Define Average cost and Marginal cost

Briefly explain the term Average cost and Marginal cost?

E

Expert

Verified

Average cost is as well named as unit cost that is equivalent to the total cost divided by number of goods manufactured or also equivalent to the sum of average variable costs and the average fixed costs. This based on the time period and also has the effect on the supply curve.

Marginal cost is the change in total cost that occurs when there is a change in quantity by one unit. It base on the change in volume. It consists of at each level of the production additional costs that is required to create the next unit.

   Related Questions in Business Economics

  • Q : Explain determining the types of the

    Explain determining the types of the various products that will be produced?

  • Q : Examples and Applications of

    What are the Examples and Applications of International Trade?

  • Q : Determine the relative cost of a product

    If banana divides are $2, CD disks are $10, and SCUBA vacations are $360, then what is the relative cost of a SCUBA vacation in phrases of a CD disk: (i) 36 disks. (ii) 360 disks. (iii) 180 disks. (iv) 20 disks. (v) 3,600 disks.

    Q : Major implication of invisible hand of

    The major implication of Adam Smith’s conception of an “invisible hand” was such that: (w) pursuit of individual self interest must be controlled. (x) most people lose sight of what’s good for society. (y) most

  • Q : Cost of debt and Equity Cost of debt =

    Cost of debt= (1-tax rate)* interest rate * (debt ÷capital employed)Cost of equity = risk free rate + market premium (equity shareholders funds÷ capital employed)

  • Q : Problem on current production

    I have a problem in economics on current production possibilities frontier. Please help me in the following question. The combination of 70 units of clothing and 30 units of food are: (1) Completely employs the economy's capacity. (2) Would leave most

  • Q : Need urgent help need urgent help in

    need urgent help in business economics, please suggest

  • Q : Describe redistributive effects of

    Describe redistributive effects of inflation?

  • Q : Divide of the study of economics MOST

    The study of economics is MOST frequently divided within: (1) positive economics and negative economics. (2) macroeconomics and microeconomics. (3) subjective economics and objective economics. (4) supply side and demand side economics. (5) conservative economics and

  • Q : What are the facts of inflation What

    What are the facts of inflation?