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AP Microeconomics
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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Marginal Cost (MC): MC represents the additional cost incurred when producing one more unit of output.
Fixed Costs (FC): FC are expenses that do not change with changes in production levels, such as rent or salaries.
Variable Costs (VC): VC are expenses that vary with changes in production levels, such as raw materials or labor costs.