Average total cost is
A) the per-unit cost and is derived by dividing total cost by marginal cost.
B) the total unit cost of production.
C) the per-unit cost and is derived by dividing total cost by the quantity of output.
D) just the marginal cost adjusted for the workers' productivity level.
E) derived by dividing marginal cost by the quantity of output.

Question

Quizplus · Accepted Answer

Average total cost is the total cost of producing a certain quantity of output divided by that quantity of output. It represents the per-unit cost of production, including all fixed and variable costs incurred in the production process. Marginal cost is the cost of producing one additional unit of output, and is not the same as average total cost.

Average Total Cost Is