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2 August, 02:32

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

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  1. 2 August, 02:43
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    Instructions are listed below.

    Explanation:

    Giving the following information:

    Classify each statement or equation according to whether it describes average variable cost, marginal cost, or average (total) cost.

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

    Total cost divided by the quantity of output: average variable cost

    Change in the total cost divided by change in output

    VC / Q: marginal cost

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

    TC / Q = variable cost

    ΔTC/ΔQ = marginal cost
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