Economics GCSE
Average cost
What Average cost means in Economics GCSE, as defined for AQA.
Definitions of Average cost
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Reference: AQA
Also known as unit cost, it is the cost of producing a single unit, calculated by dividing total cost by the quantity produced (AC = TC / Q).
Found by dividing the total cost by the quantity produced.
Topics that use Average cost
Related terms
- Average revenue
- Cost minimisation
- Ethical and moral interests
- Financial performance
- Fixed costs
- Incentives and risk
- Market share
- Profit
Using Average cost in the exam
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