Question

Write down the definition of Average Cost given by ""Dooley""?

Answer 1

Answer:

Average Cost: According to Dooley, “The average cost of production is the total cost per unit of output.” In other words average cost of production is the total cost of production divided by the total number of units produced.

Answer 2

Dooley defined average cost as: "The average cost of production is the total cost per unit of output."

What is the relation between average fixed cost and average variable cost?

• The sum of average fixed cost and average variable cost is equal to the average cost
• When the production of goods get increase than average fixed cost as well as average variable cost gets reduces
• Due to average fixed cost and average variable cost, average cost forms a U-shape