Question

Output
(unks
Average Fixed
Cost (ATO
Average
Variable Cost
(AVOR
Marginal Cost Total Cost To
IMO
Average Cout
AO
2
3
in de curve​

Answer 1

Answer:

average cost or unit cost is equal to total cost (TC) divided by the number of units of a good produced (the output Q):

{\displaystyle AC={\frac {TC}{Q}}.}{\displaystyle AC={\frac {TC}{Q}}.}

It is also equal to the sum of average variable costs (total variable costs divided by Q) and average fixed costs (total fixed costs divided by Q)Average costs may be dependent on the time period considered (increasing production may be expensive or impossible number in the short term, for example). Average costs affect the supply curve and are a fundamental component of supply and demand

AVERAGE VARIABLE COST

average variable cost (AVC) is a firm's variable costs (labour, electricity, etc.) divided by the quantity of output produced. Variable costs are those costs which vary with the output level A U-shaped short-run Average Variable Cost (AVC) curve. AC is the Average (Fixed plus Variable) Cost, AFC the Average Fixed Cost, MC the marginal cost crossing the minimum points of both the Average Cost curve and the Average Variable Cost curve.

{\displaystyle {\text{AVC}}={\frac {\text{VC}}{\text{Q}}}}{\text{AVC}}={\frac {{\text{VC}}}{{\text{Q}}}}

where {\displaystyle {\text{VC}}}{\displaystyle {\text{VC}}} = variable cost, {\displaystyle {\text{AVC}}}{\displaystyle {\text{AVC}}} = average variable cost, and {\displaystyle {\text{Q}}}{\displaystyle {\text{Q}}} = quantity of output produced.

Average variable cost plus average fixed cost equals average total cost

MARGINAL COST

In economics, the marginal cost of production is the change in total production cost that comes from making or producing one additional unit. ... The purpose of analyzing marginal cost is to determine at what point an organization can achieve economies of scale to optimize production and overall operations.