ATC equals

Name: ATC equals
Brand: Quizplus
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Question

ATC equals

Quizplus · Accepted Answer

Average total cost (ATC) is calculated by dividing total cost (fixed cost plus variable cost) by the quantity produced. Therefore, (TFC + TVC) / Q is the correct formula for ATC. Option A gives the formula for average variable cost minus average fixed cost, which is not the same as ATC. Option B gives the formula for fixed cost per unit, which doesn't take into account variable cost. Option D is incorrect because marginal cost is not included in the formula for ATC.

ATC Equals