What is the difference between marginal cost and average variable cost?

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Marginal cost is the cost of producing an additional unit of output, while average variable cost is the total variable cost divided by the number of units produced

Average variable cost is the cost of producing an additional unit of output, while marginal cost is the total variable cost divided by the number of units produced

Average variable cost includes both fixed and variable costs, while marginal cost includes only variable costs

Marginal cost includes both fixed and variable costs, while average variable cost includes only variable costs

answer is C.

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Detailed Solution

Marginal cost is the cost of producing an additional unit of output, while average variable cost is the variable cost per unit of output, calculated as total variable cost divided by the number of units produced.

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