The per-unit cost of total output is known as _____.

Question

The per-unit cost of total output is known as _____.​

Quizplus · Accepted Answer

Average total cost is calculated by dividing total cost by the quantity of output produced. It represents the per-unit cost of total output. Option B) External cost refers to costs imposed on third parties outside of market transactions, while option C) Social marginal cost reflects the total cost to society of producing one additional unit of a good or service. Option D) Total fixed cost refers to the sum total of all costs that do not change with an increase or decrease in output, while option E) Private marginal cost refers to the cost to an individual producer of producing one additional unit of a good or service. Therefore, only option A) Average Total Cost represents the per-unit cost of total output.

The Per-Unit Cost of Total Output Is Known as _____