Average total cost is equal to
A)output/total cost.
B)total cost - total quantity of output.
C)average variable cost + total fixed cost.
D)total cost/output.

Question

Quizplus · Accepted Answer

Average total cost is the total cost per unit of output. Therefore, it is calculated by dividing total cost by output. So, the correct option is D. Option A is the formula for average cost, not average total cost. Option B is not a relevant formula for average total cost. Option C combines average variable cost and total fixed cost, which is not the formula for average total cost.

Average Total Cost Is Equal to