Per-Unit Costs

Definition

Per-unit costs refer to the average cost of producing each unit of output. It is calculated by dividing the total cost by the quantity produced.

Related terms

Marginal Cost: Marginal cost is the additional cost incurred from producing one more unit of output.

Fixed Costs: Fixed costs are expenses that do not change with changes in production levels.

Variable Costs: Variable costs are expenses that change with changes in production levels.