As an Amazon Associate I earn from qualifying purchases.

What is Average Cost in Marketing? PDF Download

Learn Average Cost definition in marketing with explanation to study “What is Average Cost”. Study average cost explanation with marketing terms to review marketing course for online MBA programs.

Average Cost Definition

  • Cost per unit at a given level of production; it is equal to total costs divided by production.

    Principles of Marketing by Philip T. Kotler, Gary Armstrong



Average Cost Explanation

It is defined as production cost per unit of output, calculated by dividing with the total of fixed costs by the number of total units produced. It can be measured by fixed cost + variable costs divided by total output. The average cost curve is usually u-shaped indicates, cost is high, when number of units produced is lower in quantity. Whereas, decreasing cost shows the number of increase units.

Keep Learning Marketing Explanations

What is Supply-Side Methods?

The supply-side hypothesis is a monetary hypothesis based on the idea that expanding the supply of merchandise prompts financial development. ...

What is Intensive distribution?

It is the point at which a business overlooks integrated division and chooses to supply their item to each market ...

What is Marketing Web Site?

Advertising Websites are regularly the sites that individuals are alluding to when they utilize the expression "site". Promoting Websites contrast ...

What is Profitable Customer?

Recognizing beneficial clients is basic to a business' prosperity. Regularly I get notification from monetary pioneer "I don't have to ...

What is Online Advertising?

Internet promoting is one of the best ways for organizations of all sizes to grow their range, find new clients, ...

What is Performance Marketing?

Execution promoting has totally changed the manner in which organizations publicize and sell items. It has likewise affected the manner ...