Average Total Cost or Average Cost:
Average total cost is simply termed as average cost that is the net cost divided by the number of units of output generated.
AC = TC / Q
Here,
AC = Average CostTC = Total CostQ = number of units of output generatedAverage cost is the summation of average fixed cost and average variable cost. That is,
AC = AFC+AVC
Table: Calculation of Average Fixed, Average variable and Average Total Cost
The average cost is also termed as the unit cost as it is the cost per unit of output produced. The following figure exhibits the shape of AFC, AVC & ATC in short period.
Figure: Short run average cost curves
From the figure above, it can be understood that the behavior of the average total cost curve based on the behavior of AFC and AVC curves. In beginning, both AFC and AVC drop. Therefore ATC curve drops.
Whenever AVC curve starts rising, AFC curve falls steeply that is, fall in AFC is greater than the rise in AVC. Therefore ATC curve continues to drop. However as output rises further, there is a sharp rise in AVC that is greater than the fall in AFC. Therefore ATC curve mounts after a point. The ATC curve similar to AVC curve falls first, reaches the minimum value and then increases. Therefore it has taken a U shape.
Latest technology based Economics Online Tutoring Assistance
Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Cost and Revenue help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Cost and Revenue, project ideas and tutorials. We provide email based Cost and Revenue help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Cost and Revenue. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Economics Homework help and assignment help services. They use their experience, as they have solved thousands of Economics assignments, which may help you to solve your complex issues of Cost and Revenue. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.
The Conifers tutorial all along with the key concepts of Spermatophyta, Common Appearance and Habitat of conifers, Morphology and Adaptations in conifers
vacuum impregnation is extremely identical to the hot dip method but is much well-organized.
tutorsglobe.com hemophilia assignment help-homework help by online inborn errors of metabolism tutors
tutorsglobe.com digestion of nucleic acids assignment help-homework help by online digestion tutors
tutorsglobe.com receptor organs assignment help-homework help by online human physiology tutors
Temperature Measurement-Heat of Dissolution-Neutralization tutorial all along with the key concepts of Heat of dissolution, Description on Heat of Neutralization, Calculations
Theory and lecture notes of class NP of problems solvable all along with the key concepts of the class np of problems solvable, Complexity P & NP, deterministic polynomial-time. Tutorsglobe offers homework help, assignment help and tutor’s assistance on class NP of problems solvable.
theory and lecture notes of two-way analysis of variance all along with the key concepts of two-way analysis of variance, homework help, assignment help, f distribution and f-test tutors. tutorsglobe offers homework help, assignment help and tutor’s assistance on two-way analysis of variance.
www.tutorsglobe.com offers phosphorus analogs of amines homework help, phosphorus analogs of amines assignment help, online tutoring assistance, organic chemistry solutions by online qualified tutor's help.
tutorsglobe.com leverage assignment help-homework help by online financial management tutors
how transactions impact the accounting equation, and distinguishing between revenue and income, www.tutorsglobe.com offers assignment help, homework help and online tutoring.
tutorsglobe.com antibiotics assignment help-homework help by online anton van leeuwenhoek microscopes tutors
tutorsglobe.com net economic welfare assignment help-homework help by online nature and scope of economics tutors
theory and lecture notes of data management all along with the key concepts of data management. tutorsglobe offers homework help, assignment help and tutor’s assistance on data management.
Sex Determination and Sex Linkage tutorial all along with the key concepts of Sex Determination, Sex Determination in Drosophila and Sex Determination in Man
1932962
Questions Asked
3689
Tutors
1490349
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!