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Meaning of average cost

 

 

 

Average cost

 

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Business glossary

 

Meaning of term average cost :

 

The amount spent on producing each unit of output. The average cost is calculated by dividing the total cost by the level of output. This gives the cost per unit which is made up of two elements - the average fixed cost and the average variable cost.

 

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Meaning of term average cost

 

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