Economics 9708 · AS & A Level · 7.5

7.5 — practice question

What are the correct formulae for working out average cost (AC) and average revenue (AR)?

  • AAC = MC/TC; AR = MR/TR
  • BAC = P/TC; AR = P × Q
  • CAC = TC/Q; AR = TR/Q
  • DAC = TC/Q; AR = P/TR

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