Average total cost (ATC) is calculated as follows:
A)ATC = (change in total cost)/(change in quantity of output).
B)ATC = (change in total cost)/(change in quantity of input).
C)ATC = (total cost)/(quantity of output).
D)ATC = (total cost)/(quantity of input).

Question

Quizplus · Accepted Answer

Average total cost is calculated by dividing total cost by the quantity of output, not input. Therefore, option C is the correct formula.

Average Total Cost (ATC) Is Calculated as Follows