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Average Total Cost (ATC)

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AP Microeconomics

Definition

ATC refers to the average cost of producing each unit of output. It is calculated by dividing total cost by the quantity produced.

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"Average Total Cost (ATC)" also found in:

Subjects (1)

Principles of Microeconomics

Practice Questions (8)

Which cost curve intersects both the average variable cost (AVC) and average total cost (ATC) at their minimum points?
What happens to average total cost (ATC) when marginal cost (MC) is less than ATC?
What is the relationship between average total cost (ATC) and average variable cost (AVC) as quantity increases?
What happens to average total cost (ATC) when marginal cost (MC) increases above ATC?
The point where the average total cost (ATC) is at its lowest is achieved when?
What happens to the average total cost (ATC) when a car company produces 100,000 cars?
How does a per-unit tax impact marginal cost and average total cost (ATC)?
What is the impact of a per-unit tax on average total cost (ATC) in a regulated market?

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