Define average total cost and average variable cost, Microeconomics

Assignment Help:

Define Average Total Cost and Average Variable Cost

Average Total Cost:   The amount spent on producing every unit of output. The average cost is calculated by dividing the total level of cost by the level of output. The average fixed cost will be made up of two elements; the average fixed and average variable cost. The average cost curve will tend to be u-shaped because of the presence of increasing and then diminishing returns.

Average Variable Cost:   The average variable cost is the total variable cost separated by output. The average variable cost curve will generally be u-shaped because of the presence of enhancing returns initially in the short run decreasing average variable costs initially. Eventually, though, diminishing returns will set in and the average variable cost will begin to rise.  

 


Related Discussions:- Define average total cost and average variable cost

Cost in the long run, Cost in the Long Run Cost minimization with the V...

Cost in the Long Run Cost minimization with the Varying Output Levels -A firm's expansion path shows minimum cost combinations of labor and capital at each level of output.

Elasticity, what are the uses of cross elasticity quantity in demand/

what are the uses of cross elasticity quantity in demand/

Tech, impact of computer technology on nigerian economy

impact of computer technology on nigerian economy

Factors affecting flexible exchange rate, FACTORS AFFECTING FLEXIBLE EXCHAN...

FACTORS AFFECTING FLEXIBLE EXCHANGE RATE: Shifts in the demand and supply schedules for foreign currency take place on accountof a number of factors. Some of them are enumerat

Why it is difficult to achieve macro objectives, Why is it so difficult for...

Why is it so difficult for government to achieve all macro objectives simultaneously? Specifically showing possible trade-offs i.e. a) Stimulatory policies which enhance AD

Private, Question: (a) Using an example, differentiate between private...

Question: (a) Using an example, differentiate between private, social and external costs and benefits. (b) With the use of a diagram, describe the difference between profi

Mathematical presentation of utility maximisation, Mathematical Presentatio...

Mathematical Presentation of Utility maximisation: Consumer's objective is to maximise her utility by solving UMP. To solve UMP, we set the Lagrange function of the correspond

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd