+**Average Cost** is the total expenditure incurred to produce a good or service, divided by the number of units produced. It is a key metric for businesses, revealing the [Total Cost](/wiki/total_cost) per unit and helping set prices, often considered alongside [Marginal Cost](/wiki/marginal_cost) for optimal decision-making.
+## See also
+- [Cost](/wiki/cost)
+- [Economics](/wiki/economics)
+- [Production](/wiki/production)
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