A firm's total costs divided by the quantity produced is the:

Question

Quizplus · Accepted Answer

The cost per unit of production is calculated by dividing the total cost by the number of units produced. This is known as average total cost. Marginal product refers to the additional output produced when one more unit of input is added, marginal cost refers to the additional cost of producing one more unit of output, and marginal fixed cost refers to the increase in fixed cost when one more unit is produced. Thus, the best choice is D, average total cost.

A Firm's Total Costs Divided by the Quantity Produced Is