Average total cost and marginal cost are merely ways to express information that is already contained in a firm's total cost.

Question

Quizplus · Accepted Answer

This statement is true. Average total cost is the total cost per unit of output, while marginal cost is the cost of producing one additional unit of output. Both of these measures are derived from the firm's total cost, which includes all costs of production regardless of output level. Therefore, the information contained in average total cost and marginal cost is already inherent in the firm's total cost.

Average Total Cost and Marginal Cost Are Merely Ways to Express