The ratio of total costs to the quantity produced is referred to as
A) average fixed costs.
B) average variable costs.
C) marginal costs.
D) average total costs.

Question

Quizplus · Accepted Answer

The ratio of total costs to the quantity produced is known as average total costs (ATC). Average fixed costs (AFC) are fixed costs per unit of output, while average variable costs (AVC) are variable costs per unit of output. Marginal costs (MC) refer to the cost of producing one additional unit of output.

The Ratio of Total Costs to the Quantity Produced Is