________ cost is the cost per unit at that level of production; it equals total costs divided by production.
A) Target
B) Average
C) Marginal
D) Opportunity
E) Fixed

Question

Quizplus · Accepted Answer

Average cost is the cost per unit at a particular level of production. It is calculated by dividing total costs by the level of production. This provides an idea about the cost incurred at different levels of production and helps in decision-making related to pricing, production, and profitability. Therefore, the correct choice is average cost (B).

________ Cost Is the Cost Per Unit at That Level