Average variable cost is often U-shaped when plotted graphically ... its gross profit per cake will be $35 - $15 = $20. To calculate the net profit, the fixed costs have to be subtracted from ...

The average figure gives you a good idea of ... To determine the total cost, add the fixed and variable costs together... The number of units produced is determined. Calculate the total cost of ...

Divide the total cost by the quantity to arrive at this number. This is accounting. To calculate the average cost in accounting, multiply the sum of variable and fixed costs by the number of units ...

1. If marginal product is decreasing, then average product must also be decreasing. 2. For a fixed-proportion technology, inputs cannot be substituted for each other in production. 3. The marginal ...