The Unit Cost or Average Total Cost calculator computes the mean cost per good.
INSTRUCTIONS Choose currency units and enter the following:
Unit Cost: The calculator computes the Unit Cost (Average Total Cost) in U.S. dollars (USD). However, this can be automatically converted into other currencies via the pull-down menu.
This function is part of theand of the . The includes all of the standar formulas used in a first year microeconomics class. The measured by units, length, area, volume or weight.
Unit Cost or Average Total 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(total variable costs divided by Q) plus (total fixed costs divided by Q). may be dependent on the time period considered (increasing production may be expensive or impossible in the short term, for example). Average costs affect the supply curve and are a fundamental component of supply and demand.