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Question 17 of 40

Q.Identify the formula of estimating average cost.

(a) TVC/Q
(b) AVC/Q
(c) AFC/Q
(d) TC/Q
Puducherry TnboardTamil Nadu HSC First Year (DGE) Commerce Board 2022MCQ· 1mImportance★★★★★
43% · 17/40 Questions
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Average cost = Total Cost / Quantity, i.e. TC/Q.

Average cost (AC), also called average total cost, is the cost per unit of output. It is calculated by dividing the total cost by the number of units produced: AC = TC / Q. It can also be seen as the sum of average fixed cost (AFC = TFC/Q) and average variable …

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