--%>

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 : Economics as a science Economics as a

    Economics as a science:We no longer ask the problem whether economics is an art or a science. Science is a systematized body of knowledge. Merely as physics and chemistry are sciences, econo

  • Q : Importance of rationally optimal

    Economic scarcity is pervasive, that makes choices essential. Therefore, rationally optimal decisions hinge upon tradeoffs which essentially reflect: (i) cooperation to minimize human greed. (ii) opportunity costs. (iii) competitive social behavior. (

  • Q : Cornerstone of typical economic theory

    The cornerstone of typical economic theory derived through the work of Jeremy Bentham was the perception of (i) the wages fund. (ii) natural checks on population. (iii) increasing cost. (iv) utility. (v) surplus value.

    Q : Introduction of the term Risk factor

    Give a brief introduction of the term Risk factor?

  • Q : Illustrate receipts from several

    Illustrate how receipts come from several sources in Federal Finance?

  • Q : Characteristics of Perfectly

    Perfect competition is characterized by all of the following except w) heavy advertising by individual sellers. x) homogeneous products. y) sellers are price takers. z) a horizontal demand curve for individual sellers.

    Q : Problem regarding supplies-demands and

    The new supply and demand curves within University City are S0 and D0. But after the county commission imposed a $3 per six-pack excise tax upon beer: (1) demand fell to D1 from the perspectives of beer dealers. (2) co

  • Q : Need urgent help need urgent help in

    need urgent help in business economics, please suggest

  • Q : Higher opportunity costs of attendance

    Economics professors would attribute students’ higher rates of attendance on days while examinations are administered to the: (w) intensified needs to learn valuable material. (x) higher opportunity costs of missing set relative to other schedul

  • Q : Heterodox cost theory Is Eiteman &

    Is Eiteman & Guthrie’s empirical evidence on the shape of the average total cost curve consistent along with heterodox cost theory?  Discuss it out.