Average total cost is equal to
A)average fixed cost minus average variable cost.
B)total cost divided by the level of output.
C)marginal cost plus variable cost.
D)total cost divided by the number of workers.

Question

Quizplus · Accepted Answer

Average total cost is the total cost divided by the level of output. It is the sum of average fixed cost and average variable cost. Therefore, option B is the correct choice as it mentions this definition. Option A and C are incorrect as they provide incorrect definitions for average total cost, and option D is irrelevant as the number of workers is not necessarily related to the level of output.

Average Total Cost Is Equal to