Economics A Level: What is Average Cost (Average Total Cost)

Question

What is Average Cost (Average Total Cost)

go kys · Accepted Answer

-This is the Cost per Unit Made 
-Divide TC by Quantity (Q) produced.
-Can also Find Average Variable Cost (TVC / Q) and Average Fixed Cost (TFC / Q) (Note: AFC goes DOWN as Q goes up as TFC does not change as Q rises)

Economics A Level

What is Average Cost (Average Total Cost)

-This is the Cost per Unit Made -Divide TC by Quantity (Q) produced. -Can also Find Average Variable Cost (TVC / Q) and Average Fixed Cost (TFC / Q) (Note: AFC goes DOWN as Q goes up as TFC does not change as Q rises)

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