Asked by Preston Heffington on Jul 26, 2024
Verified
Average total cost reveals how much total cost will change as the firm alters its level of production.
Average Total Cost
The total cost of production divided by the number of units produced, measuring the cost per unit of output.
- Gain an understanding of how various costs measures like total cost, average total cost, marginal cost, fixed cost, and variable cost are related.
Verified Answer
SB
Skylar BaileyJul 30, 2024
Final Answer :
False
Explanation :
Average total cost shows the cost per unit of output, not how total cost changes with production levels.
Learning Objectives
- Gain an understanding of how various costs measures like total cost, average total cost, marginal cost, fixed cost, and variable cost are related.