Average total cost is found by dividing
A)variable cost by output.
B)output by variable cost.
C)total cost by output.
D)output by total cost.

Question

Quizplus · Accepted Answer

Average total cost is calculated by dividing the total cost by the output. This includes both fixed and variable costs, and is therefore represented by the formula: ATC = TC/Q, where ATC is the average total cost, TC is the total cost, and Q is the output.

Average Total Cost Is Found by Dividing