Average total cost equals
A) the change in total cost divided by the change in output.
B) total fixed cost divided by output.
C) average fixed cost plus average variable cost.
D) total cost minus total variable cost.
E) average fixed cost plus average variable cost plus marginal cost.

Question

Quizplus · Accepted Answer

Average total cost (ATC) is the total cost per unit of output, and it is equal to the sum of average fixed cost (AFC) and average variable cost (AVC) at each level of output. This can be represented as ATC = AFC + AVC. Therefore, the correct answer is C, average fixed cost plus average variable cost.

Average Total Cost Equals