Asked by Summer Reimer on Jul 25, 2024
Verified
Total cost divided by the quantity of output produced is:
A) average total cost.
B) average fixed cost.
C) average product.
D) marginal cost.
Total Cost
The complete cost of producing a certain amount of output, including both fixed and variable costs.
Quantity
The amount or number of a material or immaterial thing not usually estimated by spatial measurement.
Average Total Cost
The total cost of production (fixed plus variable costs) divided by the quantity of output produced.
- Acquire knowledge on the notions of average total, average variable, and average fixed costs.
Verified Answer
KR
Kevin ReynaJul 27, 2024
Final Answer :
A
Explanation :
Total cost divided by the quantity of output produced is the definition of average total cost.
Learning Objectives
- Acquire knowledge on the notions of average total, average variable, and average fixed costs.