After all, before that capability, âIt used to be that girls would bring a suitcase of Girl Scout cookies when they went to visit grandma,â says Anna Maria ChÃ¡vez, CEO of Girl Scouts of the USA. âThe number one reason people donât buy Girl Scout cookies is because they canât find a Girl Scout.
Average Costs Edit. 1  Definition. 2  Average cost is equal to total cost divided by the number of goods produced (the output quantity, Q). 3  It is also equal to the sum of average variable costs (total variable cost divided by Q) plus average fixed costs (total fixed costs divided by Q).
The great thing about average-cost pricing is that a regulated public utility is guaranteed a normal profit, usually termed a fair rate of return. One bad thing about average-cost pricing is that marginal cost is less than average total cost meaning that price is greater than marginal cost. As such, the public utility is NOT operating according to the price equals marginal cost (P = MC) rule of efficiency.