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What is average cost in the producing output?
Average total cost, frequently considered as to simply average cost, is sum of total cost divided through quantity of output generated.
ATC = TC/Q
Average fixed cost:
It is the fixed cost per unit of output as:
AFC = FC/Q
Average variable cost:
It is the variable cost per unit of output as:
AVC = VC/Q
Consider the economic data for Country A: Unemployment level of 15% Natural Rate of Unemployment is 6%. Required Reserves is 25% C = 50 + 0.75Y; I = 600; G = 250 (note: T = 200 for
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