Average cost
What Average cost means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Average cost
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Reference: Pearson Edexcel
Total cost divided by the quantity produced, so that producing 100 units at a total cost of £500 gives an average cost of £5.
The total cost divided by the quantity produced, also known as unit cost.
Topics that use Average cost
- Business objectives and pricing decisions (Pearson Edexcel A-Level)
- Revenue and costs (Pearson Edexcel A-Level)
Related terms
- Contribution per unit
- Fixed costs
- Marginal cost
- Marginal revenue
- Market share
- Profit
- Total cost
- Average revenue
Using Average cost in the exam
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