Share This Article:

Economic Definition of average total cost. Defined.

Offline Version: PDF

Term average total cost Definition: Total cost per unit of output, found by dividing total cost by the quantity of output. Average total cost, usually abbreviated ATC, 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.

 

« average tax rate | average total cost curve »

Permalink: http://glossary.econguru.com/economic-term/average+total+cost

Alphabetical Reference to Over 2,000 Economic Terms