Average Total Cost (ATC)

$$\text{Average Total Cost}=\frac{\text{Total Costs}}{\text{Quantity}}=\frac{\text{TC}}{Q}$$

Or:

$$\text{ATC}=\frac{\text{TC}}{Q}$$

Where:

• $\text{TC}$ = Total Costs
• $Q$ = Quantity of output

$$\text{ATC}=\frac{\text{FC}}{Q}+\frac{\text{VC}}{Q}=\text{AFC}+\text{AVC}$$