Average total cost is the
A) cost of all resources divided by the quantity of resources.
B) cost of all resources divided by the quantity of output.
C) quantity of output divided by the cost of all resources.
D) change in the cost of all resources divided by the change in the quantity of resources.
E) change in the cost of all resources divided by the change in the quantity of output.

Question

Quizplus · Accepted Answer

Average total cost is the total cost (fixed and variable) divided by the quantity of output produced. Therefore, option B is the correct answer as it represents the formula for calculating average total cost.

Average Total Cost Is the