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average cost
(redirected from Average total costs)

   Also found in: Dictionary/thesaurus, Medical, Financial, Wikipedia 0.03 sec.

average cost

Or unit cost, total cost divided by output. For example, if a firm has total costs of 10 million with an output of 1 million units, the average cost is 10. If long-run average cost falls as output increases, then the business organization will experience economies of scale.



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In July 2004, average total costs of compliance were estimated to be $3.
Jones and Butler have proposed that a firm competing mainly with the low cost strategy would have lower average total costs (that are comprised of lower average production costs and lower average transaction costs) vs.
 
 
 
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