--%>
Assignment Help - homework help

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 : Ambrose’s budget constraint Question:

    Question: Ambrose consumes two goods, peanuts (x1 ) and a composite good (x2). He has a utility functionU = 4 √x1 + x2. This means his MU1 = 2/ √x1 an

    		•
  • Q : Advantage and disadvantage of Sole

    Illustrate the advantage and disadvantage of Sole proprietorship?

    		•
  • Q : What are the main sources of growth

    What are the main sources of growth?

    		•
  • Q : Describe the term Cost of debt Briefly

    Briefly describe the term Cost of debt?

    		•
  • Q : Illustrate Scarcity and choice of

    Illustrate Scarcity and choice of Economic Perspective?

    		•
  • Q : Explain about the arbitrage except

    Not like speculation, there arbitrage is: (w) an activity which is generally more lucrative when conditions are favorable. (x) a profitable and relatively riskless activity. (y) the process of representing a domestic company within fo

    		•
  • Q : Self-interest theory demonstration by

    The model of _____ was demonstrated by _____ along with the quote, “The loss of a small finger would remain the average European by sleeping which night, ... but, given he never observed them, he will snore with the most profound security over the loss of millio

    		•
  • Q : Theory of Purchasing Power Parity

    Question: The Theory of Purchasing Power Parity says that, in the long run, nominal exchange rates change to offset changes in relative i. _________________________ so that the purchasing power of two currencies st

    		•
  • Q : Innate psychological attributes of

    As illustrated by Adam Smith that there are two innate psychological attributes of humans. One is which people have a powerful wish to better their individual circumstances. The other is as human beings so we are: (1) more interested

    		•
  • Q : When are transaction costs to ultimate

    Transaction costs to ultimate consumers are reduced if: (w) consumers travel long distances to buy directly from manufacturers quite than buying the goods at local retail stores. (x) intermediaries generate income while conveying goods from manufactur

    		•