Average Cost Per Unit. Displaystyle ac frac tc q average cost has strong implication to how firms will choose to price their commodities. Average cost per unit of production is equal to total cost of production divided by the number of units produced.
It is also known as the unit cost. Average cost per unit of production is equal to total cost of production divided by the number of units produced. Cost per unit can be said to be the per unit expenses incurred by the company to produce goods or services.
Difference between cost per unit and price per unit.
Average cost is a cost accounting term that is sometimes referred to as unit cost or weighted average cost. A successful business relies on being able to make a profit. In economics average cost or unit cost is equal to total cost divided by the number of units of a good produced. Average cost per unit of production is equal to total cost of production divided by the number of units produced.
