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प्रश्न
What is meant by average cost?
लघु उत्तर
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उत्तर
Average cost (AC) is the cost of producing one unit of output. It is found by dividing total cost (TC) by total output (Q), i.e., `AC = (TC)/Q`. It is made up of average fixed cost (AFC) and average variable cost (AVC), So AC = AFC + AVC. The AC curve is usually U-shaped, first falling due to economies of scale and then rising because of diseconomies.
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