Krugman's Economics For The Ap® Course
Krugman's Economics For The Ap® Course
3rd Edition
ISBN: 9781319113278
Author: David Anderson, Margaret Ray
Publisher: Worth Publishers
Question
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Chapter 55, Problem 3MCQ
To determine

Costs

Expert Solution & Answer
Check Mark

Explanation of Solution

The correct statement is AVC = ATC-AFC because Average variable cost is calculated by subtracting the average fixed cost from average total cost.

Therefore, the correct option is e.

Economics Concept Introduction

Introduction:

Total cost is the sum of all costs or expenses that are incurred by a business firm while doing business activities.

Average total cost is determined by summing up the average variable cost and average fixed cost.

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