Question

Give economic terms:

The cost incurred per unit of output.

Answer 1

Average cost

Explanation:

The average cost is calculated by dividing the entire cost of production by the total number of units produced. It assists firms in determining the minimum price at which they must sell their goods in order to avoid incurring losses. As manufacturing expands, this per-unit cost often falls at first due to economies of scale, but then rises due to inefficiencies.