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JAMB Economics 1979 Question 15

Question 15

Theory of Costs and Revenue

Average Cost is

  1. A.the total cost of production
  2. B.the extra cost of producing one additional unit of output
  3. C.the cost of producing a unit of output
  4. D.variable cost
  5. E.overhead cost.
Show the answer and explanation

Answer: C (the cost of producing a unit of output)

Explanation

Average cost is total cost divided by output, i.e. the cost per unit produced.