The production cost that varies inversely with ... - JAMB Economics 2022 Question
The production cost that varies inversely with output is the
A
total fixed cost
B
marginal cost
C
average fixed cost
D
average cost
correct option: d
Option B is the correct answer.
When the number of goods increases, the average cost of goods decreases because average cost is directly proportional to the total cost of goods and inversely proportional to the number of goods.
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