Average total cost is
A)total cost divided by the quantity of output produced.
B)total explicit costs divided by the quantity of output produced.
C)variable cost divided by the quantity of output produced.
D)the change in fixed plus variable cost divided by the quantity of output produced.

Question

Quizplus · Accepted Answer

Average total cost is the total cost of producing a certain quantity of output divided by the quantity of output produced. It includes both explicit and implicit costs, as well as fixed and variable costs. Therefore, option A is the most appropriate answer.

Average Total Cost Is