Average total cost equals
A)change in total costs divided by quantity produced.
B)change in total costs divided by change in quantity produced.
C)(fixed costs + variable costs) divided by quantity produced.
D)(fixed costs + variable costs) divided by change in quantity produced.

Question

Quizplus · Accepted Answer

Average total cost is calculated by dividing the total cost (which is the sum of fixed costs and variable costs) by the quantity produced. Therefore, option C is the correct choice. Option A and B are incorrect because they both refer to the calculation of marginal cost. Option D divides the total cost by a change in quantity produced, which does not accurately represent the average total cost.

Average Total Cost Equals