Which of the following formulas defines average cost?
A)AC = TC/Q
B)AC = MRP = MFC
C)AC = MPP/Q
D)AC = TC - Q

Name: Which of the following formulas defines average cost? A)AC = TC/Q B)AC = MRP = MFC C)AC = MPP/Q D)AC = TC - Q
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Question

Quizplus · Accepted Answer

Average cost (AC) is defined as total cost (TC) divided by the quantity produced (Q). Therefore, the formula AC = TC/Q (option A) correctly defines average cost. Options B, C, and D are incorrect.

Which of the Following Formulas Defines Average Cost