Asked by Deviolette Taylor on Sep 23, 2024
If AVC=$15 and AFC=$10,then ATC=
A) $10
B) $5
C) $15
D) $25
Average Total Cost
The total cost of production divided by the number of units produced, representing the per-unit cost of production including both fixed and variable costs.
AVC
Average Variable Cost refers to the cost of producing each unit that varies with the volume of output.
AFC
Average Fixed Cost, which is the fixed costs of production divided by the quantity of output produced.
- Understand how average variable cost (AVC), average fixed cost (AFC), and average total cost (ATC) are calculated and their significance in production cost analysis.
Learning Objectives
- Understand how average variable cost (AVC), average fixed cost (AFC), and average total cost (ATC) are calculated and their significance in production cost analysis.