![Economics 101: Average Total Cost](https://i0.wp.com/sterlingterrell.net/wp-content/uploads/2016/11/1-11.jpg?fit=635%2C423&ssl=1)
[This is part of the series: The Complete Guide To Economics 101.]
What is average total cost?
Average Total Cost is total cost divided by output or quantity.
Formally:
Average Total Cost = Total Cost / Quantity Produced
This is where:
Profit = Total Revenue – Total Cost