Marginal Cost
Marginal cost is the additional cost occurred when you produce additional unit of good
Average Fixed Cost
Average Fixed Cost is the fixed cost per unit of output.
The average fixed cost is the ratio between the fixed cost and quantity produced
Average Fixed Cost -: Fixed Cost / Output Produced
Average Variable Cost
The average variable cost is the variable cost per unit of output
Average variable cost is the ratio between variable cost and quantity produced
Formula -: Variable Cost / Quantity Produced
Average Total Cost
Average Total Cost is the total cost per unit of output.
Its the average cost of fixed and variable cost
Why do businesses aim to minimize average cost, and how does it affect profitability?
How does the concept of economies of scale relate to average cost?
What factors influence the average cost of goods in different industries?
How do fixed and variable costs contribute to the calculation of average cost?
Why does the average cost curve typically have a U-shape in the short run?
How can businesses use average cost analysis to determine pricing strategies?
Keywords: Average cost, Fixed cost, Variable cost, Economies of scale, Marginal cost, Total cost, Cost curve, Pricing strategy, Production efficiency, Market competition.