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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
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Correct Answer: Option D
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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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
NECO June/July 2024 - Get offline past questions & answers - Download objective & theory, all in one app 48789
Join your school's WhatsApp group
NECO June/July 2024 - Get offline past questions & answers - Download objective & theory, all in one app 48789
Join your school's WhatsApp group
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts