6.1 Calculate Total Cost and Per-Unit Cost Given Various ...
Average Total Cost = Total Cost/Output = Average Fixed Cost + Average Variable Cost; in formula: AC(Q) = AFC(Q) + AVC(Q); AVC(Q) = VC(Q)/Q and AFC(Q) = FC/Q. Finally the marginal cost evaluated at Q units of output, MC(Q), is the cost generated by the production of an extra unit of output. Example 1: Simplest conceivable cost structure (e.g., TV Listing Magazines) Description of the cost … ................
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