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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
The hypotheses are: The null hypothesis, infers that a unit root exists, whereas the alternative hypothesis, concludes that there is no root. Decision rule:
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