What does average total cost equal
A)change in total costs divided by quantity produced
B)change in total costs divided by change in quantity produced
C)(fixed costs plus variable costs) divided by quantity produced
D)(fixed costs plus variable costs) divided by change in quantity produced

Question

Quizplus · Accepted Answer

Average total cost is the total cost of production divided by the quantity produced. The total cost of production is the sum of fixed costs and variable costs. Therefore, average total cost equals (fixed costs plus variable costs) divided by quantity produced.

What Does Average Total Cost Equal