The _________ incurred by the firm is de

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Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Production and Costs

Question:

The _________ incurred by the firm is defined as the total cost per unit of output.

Options:

Short run average cost (SAC)

Average Variable cost

Total Cost

Average fixed Cost

Correct Answer:

Short run average cost (SAC)

Explanation:

The correct answer is Option 1: Short run average cost (SAC)

The short run average cost (SAC) incurred by the firm is defined as the total cost per unit of output.

We calculate it as SAC= TC/Output