Question

In: Economics

In order to determine _____, the firm's total cost must be divided by the quantity of...

In order to determine _____, the firm's total cost must be divided by the quantity of its output.

A) fixed cost

B) average cost

C) diminishing marginal returns

D)variable cost

Solutions

Expert Solution

Option B.

The average cost of production of the firm = Total cost of production / Quantity of Output produced. Thus, in order to determine average cost, the firm's total cost must be divided by the quantity of its output.

Rahul Sunny answered 2 years ago
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