Average cost is:
A)the change in cost divided by the change in quantity.
B)total cost divided by quantity.
C)the change in quantity divided by the change in cost.
D)total cost times quantity.

Question

Quizplus · Accepted Answer

Average cost is calculated by dividing the total cost by the quantity produced. Therefore, option B is the correct answer. Option A describes the concept of marginal cost, option C is an inverted form of the concept of marginal cost, and option D refers to the total revenue.

Average Cost Is