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average cost

   Also found in: Dictionary/thesaurus, Medical, Financial, Wikipedia 0.01 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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? Mentioned in ? References in periodicals archive
 
The average cost of renting a house in London fell 17% between April and September 2008 as a result.
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