Question

Explain the average cost with the help of a table and diagram

Answer 1

Answer:

Please aplode the table.

Answer 2

Average Cost (AC) or Average Total Cost (ATC)

Explanation:

Average Cost or Average Total Cost refers to the per unit total cost of production.

               AC = $\frac{TC}{Q}$

AC initially falls with an increase in output. Once the output rising till the optimum level AC starts rising too.  In the given graph you can observe the following:

• AC curve is a U-shaped curve
• AC initially falls but after reaching its minimum point it starts rising.