Differentiate between Average Cost and Marginal Cost. – InterviewSolution

1.

Differentiate between Average Cost and Marginal Cost.

Answer»

Average cost	Marginal cost
1. The total cost per unit of production marginal cost. is called the average cost or total average cost.	1. The change in total cost when an additional unit of output is produced is called
2. Equation: Average cost (AC) = TCTP OR Average cost (AC) = FC+VCTP	2. Equation: MC_n = Tc_n – Tc_{(n – 1)}
3. Curve of Average cost is ‘U’ shaped.	3. Curve of Marginal Cost is hockey stick shaped.

Discussion

No Comment Found

Related InterviewSolutions

What were the two main occupations of the Rig Vedic Aryans?
Name the two political institutions which exercised check on the powers of the King in the Rig Vedic period.
What w’as the position of women in the Rig Vedic age ?
Describe the social life of the Rig Vedic Aryans with reference to the following: (a) The Family Structure (b) Position of Women (c) Varna System
With reference to the following explain the main features of the Rig Vedic Economy: (a) Agriculture (b) Domestication of Animals (c) Trade Transactions, Crafts and Transportation
Mention any two archaeological sources to reconstruct the later Vedic Age.
Mention any two of the Ashrams in the life of a man in Aryan society.
What information do we gather from the later Vedic literature in respect of: (a) Spread of Vedic Civilization to many New Regions. (b) Role of Iron in later Vedic Economy.
Mention briefly the rituals and sacrifices of the later Vedic Aryans?
What is the message of the Bhagavad Gita?