The average total costs of the firm as defined in standard economic theory
A)are the sum of the fixed and any variable costs divided by the number of units of labour input
B)are the sum of the fixed and any variable costs
C)are the sum of the average fixed and the total variable costs
D)are the sum of the fixed and variable costs divided by the number of units of output

Question

Quizplus · Accepted Answer

Average total costs in standard economic theory are calculated by dividing the sum of fixed and variable costs by the number of units of output produced. This gives the cost per unit of output.

The Average Total Costs of the Firm as Defined in Standard