Average total cost is defined as:

Name: Average total cost is defined as:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Average total cost is the total cost divided by the total output. This includes both the fixed and variable costs, so it provides a complete picture of the cost per unit of output. Option B is incorrect because it only considers the total cost in relation to the price, which doesn't provide a complete picture. Option C and D are incorrect because they only consider the variable cost, which is not the same as total cost.

Average Total Cost Is Defined As