Averages cost (AC) equal to?

A.AC_TC
B. TC_AC
C. TC_AVC
D. TC_MC
E. TC_Q

Correct Answer:

Option D – TC_MC

Explanation

Average cost. In economics, average cost and/or unit cost is equal to total cost divided by the number of goods produced (the output quantity, Q). It is also equal to the sum of average variable costs (total variable costs divided by Q) plus average fixed costs (total fixed costs divided by Q)