Average total cost is:

A) the change in variable cost divided by the change in quantity.
B) total cost divided by quantity.
C) the change in quantity divided by the change in labor costs.
D) total cost times quantity.

Average Total Cost

The total cost of production divided by the quantity of output produced, representing the average cost per unit of output.

Total Cost

The complete cost of production, including both fixed and variable costs, incurred by a firm in producing a specific amount of output.

Variable Cost

Expenses that fluctuate based on the volume of goods or services a company generates, including materials and labor.