The production cost that varies inversely with output is the
ECONOMICS
JAMB 2022
The production cost that varies inversely with output is the
- A. total fixed cost
- B. marginal cost
- C. average fixed cost
- D. average cost
Correct Answer: D. average cost
Explanation
Average cost is directly proportional to the total cost of goods and inversely proportional to the number of goods, so average cost decreases when the number of goods increases.
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