Which of the following explains the relationship among different cost functions
A)The marginal cost of the fifth unit of output equals the total fixed cost of five units minus the total fixed cost of four units.
B)The total variable cost of seven units equals the average variable cost of seven units divided by seven.
C)The average total cost of seven units equals the average variable cost of the seven units minus the average fixed cost of seven units.
D)The marginal cost of the fifth unit of output equals the total variable cost of five units minus the total variable cost of four units.

Question

Quizplus · Accepted Answer

Marginal cost is the change in total variable cost when one more unit is produced, which is the difference between the total variable cost of five units and four units.

Which of the Following Explains the Relationship Among Different Cost