Average cost (AC) refers to the total cost divided by the quantity of output produced. It represents how
Tag: production
economies of scale
Economies of scale occur when a company lowers its costs by increasing the amount of goods it produces.
marginal cost
Marginal cost (MC) is the extra cost a business pays to produce one additional unit of a product.
supernormal profit
Supernormal profit (also known as abnormal profit or economic profit) is the profit a business earns that goes