Economic Definition of ATC. Defined.
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Term ATC Definition: The abbreviation for average total cost, which is total cost per unit of output, found by dividing total cost by the quantity of output. Average total cost can be found in two ways. Because average total cost is total cost per unit of output, it can be found by dividing total cost by the quantity of output. Alternatively, because total cost is the sum of total variable cost and total fixed cost, average total cost can be derived by summing average variable cost and average fixed cost.