Because the fixed costs of production do not change in the short run, the total fixed cost divided by the number of units is known as the short-run
A) average variable cost function
B) marginal cost function
C) average fixed cost function

Question

Quizplus · Accepted Answer

The total fixed cost divided by the number of units gives the average fixed cost function, which is a measure of the fixed cost per unit of output. The average variable cost function is the variable cost per unit of output, while the marginal cost function is the additional cost of producing one extra unit of output.

Because the Fixed Costs of Production Do Not Change in the Short