Total cost divided by the number of units produced is called:
A)marginal cost
B)average cost
C)total cost
D)variable cost

Question

​Total cost divided by the number of units produced is called:
A)​marginal cost
B)average cost
C)total cost
D)​variable cost

Quizplus · Accepted Answer

Total cost divided by the number of units produced is called average cost. This is the cost per unit of output and is obtained by dividing the total cost by the number of units produced. It includes both fixed and variable costs, and is an important measure for businesses to determine their profitability and pricing decisions. Marginal cost is the change in total cost that results from producing one additional unit of output, while total cost is the sum of all costs incurred in producing a given level of output. Variable cost is the cost that varies with the level of output, while fixed cost remains constant regardless of the level of output.

​Total Cost Divided by the Number of Units Produced Is

Total Cost Divided by the Number of Units Produced Is