Average Total Cost Curve

This refers to the graphical representation of the cost per unit of output compared with the level of output.

The Average Total Cost Curve is typically curved to reflect the fact that one-off items have a higher unit cost of production than mass produced items, with the shape of the curve reflecting the mix of fixed and variable costs making up the total cost.

Average Total Cost Curve is a term normally found in economics and financial management; Explore our learning zone to discover more