Average total cost
This is the current revision of Average total cost as edited by Philip J. Rayment (talk | contribs) at 12:13, January 26, 2008. This URL is a permanent link to this version of this page.
Average total cost (ATC) for a firm or business is its total cost divided by the quantity of its output:
- ATC = (total cost) / (quantity of output)
ATC is also the sum of the average fixed cost plus the average variable cost:
- ATC = AFC + AVC