The average cost of producing an FI's output of financial services is measured as follows:
A) AC = TC - S
B) AC = TC + S
C) AC = TC $\times$ S
D) AC = TC / S

Name: The average cost of producing an FI's output of financial services is measured as follows: A) AC = TC - S B) AC = TC + S C) AC = TC $\times$ S D) AC = TC / S
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Question

Quizplus · Accepted Answer

The average cost (AC) is calculated by dividing the total cost (TC) of production by the level of output (S). Therefore, the correct formula is AC = TC / S.

The Average Cost of Producing an FI's Output of Financial ×\times×

The Average Cost of Producing an FI's Output of Financial $\times$