Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Production and Costs

Question:
Average variable cost at some level of output is therefore, the average of all marginal costs up to that level.
Is this statement true?
Options:
Yes
No
Maybe yes
Maybe no
Correct Answer:
Yes
Explanation:
AVC is TVC divided by number of units of output and TVC at any level is the sum of marginal costs up to that level . So, Average variable cost at a level of output is therefore, the average of all marginal costs up to that level.