AVERAGE COST

FG

1. ECONOMICS Saran Chandran S1 MBA

2. Average cost of production is the cost of production of one unit

3. It is calculated by dividing the total cost by the number of units produced. AC=TC/Q C=TC/Q TC= Total cost of production Q= No. of units produced CALCULATION

4. Average Cost Short Run Average Cost Long Run Average Cost

5. * Here fixed costs are zero * Variable costs constant SHORT RUN AVERAGE COST

6. * Long run is a time frame in which the firm can vary the quantities * Unit cost of producing a certain output when all inputs are variable LONG RUN AVERAGE COST

7. THANK YOU…….