(Ekonomi) In economics, average cost is equal to total cost divided by the number of goods produced (Quantity-Q). It is also equal to the sum of average variable costs (total variable costs divided by Q) plus average fixed costs (total fixed costs divided by Q). Average costs may be dependent on the time period considered (increasing production may be expensive or impossible in the short term, for example). Average costs affect the supply curve and are a fundamental component of supply and demand
Average cost of each share of the security This equals the total cost of all currently held shares of a security (the cost basis) divided by the number of shares currently held
Usually refers to average total cost, which is the total cost of production of a good or service (including the costs of fixed inputs and variable inputs) divided by the quantity produced
The average cost for a unit of output (e g , one day in a hospital for one patient) is the total cost (or benefit) of the total units of output divided by the total units of output
Utility revenue divided by utility sales Average cost typically includes the costs of existing power plants, transmission and distribution lines, and any additional facilities used by the utility in behalf of the customer
The revenue requirement (which includes any guaranteed rate-of-return) of a utility divided by the utility's sales Average cost typically includes the costs of existing power plants, transmission, and distribution lines, and other facilities used by a utility to serve its customers It also includes operating and maintenance, tax, and fuel expenses
The revenue requirement of a utility divided by the utility's sales Average cost typically includes the costs of existing power plants, transmission, and distribution lines, and other facilities used by a utility to serve its customers It also included operating and maintenance, tax, and fuel expenses
The Cost of an item at a point of time as determined by applying an average of the cost of all items of the same nature over a period as weighted average cost