average cost

USAGE SUMMARY

The phrase "average cost" is correct and usable in written English.
It can be used in contexts related to finance, economics, or business when discussing the typical cost of a product or service over a specific period or across a range of items. Example: "To determine the average cost of production, we need to analyze the expenses incurred over the last quarter."

✓ Grammatically correct

News & Media

Science

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

How do I calculate average cost effectiveness?

Cornell University

The average cost was $53.88 a share.

The New York Times

About $450 is my daily average cost.

The Washington Post

The average cost per device: $400.

The New York Times - Health

(The average cost does not include energy surcharges).

The New York Times - Travel

The average cost of an item will be about 50p.

The Guardian - Business

The average cost of a house is £700,000.

The Guardian - Opinion

Average cost per individual trip is down by 80percentt.

Massachusetts Institute of Technology

In 1980, the average cost was $9.4 million.

The New York Times

– What is the average cost of a meal?

The New York Times

Books, on average, cost less today than in 1997.

The New York Times

Expert writing Tips

Best practice

Use "average cost" when you need to represent the central tendency of a set of costs. It's a single value that summarizes the overall expense, helping in comparisons and budget analysis.

Common error

Avoid using "average cost" when you really need to refer to marginal cost. "Average cost" considers all costs divided by the number of units, whereas marginal cost is the additional cost of producing one more unit. Using them interchangeably can lead to inaccurate financial decisions.

Linguistic Context

The phrase "average cost" functions as a noun phrase, often used as a subject or object in a sentence. It denotes a calculated value representing the typical expense. Ludwig shows various examples of its usage in different contexts.

Expression frequency: Very common

Frequent in

News & Media

39%

Science

33%

Formal & Business

15%

Less common in

Academia

8%

Wiki

0%

Encyclopedias

0%

Ludwig's WRAP-UP

The phrase "average cost" is a common and grammatically correct term used to describe the typical expense of a product, service, or activity. Ludwig AI confirms its validity and provides numerous examples across various contexts, including news, science, and business. The phrase is generally neutral in register, though it can be formal depending on the specific application. While phrases like "mean expenditure" and "typical expense" can serve as alternatives, it's important to avoid confusing "average cost" with "marginal cost". Understanding the nuances of "average cost" is crucial for clear communication and accurate financial analysis.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

mean expenditure

Replaces "cost" with "expenditure" and "average" with "mean", emphasizing the total amount spent.

typical expense

Substitutes "average" with "typical", highlighting a common or representative cost.

average expenditure

Replaces "cost" with "expenditure", focusing on the total outlay of funds.

average price

Switches "cost" with "price", indicating the monetary value requested for goods or services.

unit cost

Focuses on the cost per single item or unit, which can be an average.

standard rate

Implies a commonly accepted or usual price point.

prevailing rate

Emphasizes the current or most common price in the market.

going rate

An informal way to refer to the current market price or cost.

median cost

Uses the median instead of the average, representing the midpoint of a range of costs.

approximate cost

Indicates an estimated cost, which might not be exact but is close to the "average cost".

FAQs

How do I calculate the "average cost"?

To calculate the "average cost", divide the total cost by the number of units or items. For example, if your total expenses are $1000 and you produced 100 units, the "average cost" would be $10 per unit.

What is the difference between "average cost" and "marginal cost"?

"Average cost" is the total cost divided by the number of units, while "marginal cost" is the cost of producing one additional unit. They serve different analytical purposes in economics and business.

When should I use "average cost" in a sentence?

Use "average cost" when discussing the typical expense of a product, service, or activity over a given period or across a set of items. It's useful for budgeting, pricing, and comparative analysis.

What are some alternatives to using "average cost"?

Depending on the context, you can use phrases like "mean expenditure", "typical expense", or "unit cost" instead of "average cost".