AVERAGE COST: The opportunity cost incurred per unit in the production of a good. This can be calculated by dividing the total cost of production by the quantity of output produced. While average cost is a general term relating cost and the quantity of output, three more specific average cost terms that are worth a closer look are average total cost, average variable cost, and average fixed cost. As long as you're looking into cost, you might want to spend a little time with the most important member of the cost family of terms, marginal cost.

     See also | opportunity cost | production | good | quantity | average total cost | average variable cost | average fixed cost | total cost | marginal cost |

AVERAGE COST, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2025. [Accessed: April 28, 2025].

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Markets or industries with two or more sellers and buyers that fail to match the criteria of perfect competition. The most noted examples of imperfect competition are the two market structures with selling-side control--monopolistic competition and oligopoly. Lesser known market structures with buying-side control--monopsonistic competition and oligopsony--are also considered as imperfect competition. Facing no competition, monopoly and monopsony are not included. Most real world markets can be considered imperfect competition.

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