Which of the following expressions is correct?
A)marginal cost = (change in quantity of output)/(change in total cost)
B)average total cost = (total cost)/(quantity of output)
C)total cost = variable cost + marginal cost
D)average variable cost = (quantity of output)/(total variable cost)

Question

Quizplus · Accepted Answer

The expression for average total cost is correctly stated as total cost divided by quantity of output. The other expressions are either incorrect or incomplete. For instance, the expression for marginal cost should include only the change in variable cost, not total cost. The expression for total cost should not include marginal cost as a separate component. The expression for average variable cost should include only variable cost in the denominator.

Which of the Following Expressions Is Correct