Average total cost is
A)the change in cost as output decreases
B)the change in cost as output increases
C)TC / quantity of output
D)MC - TC
E)AVC - AFC

Question

Quizplus · Accepted Answer

Average total cost (ATC) is defined as the total cost (TC) divided by the quantity of output. Therefore, the correct choice is C. A refers to marginal cost (MC), B is referring to the marginal cost curve which is not related to ATC, D is referring to the marginal cost minus total cost which is not equal to ATC and E is referring to average variable cost (AVC) minus average fixed cost (AFC) which is also not equal to ATC.

Average Total Cost Is