Guide on what is Average Cost. We explain how to calculate, differences with marginal cost, examples, diagram, advantages & disadvantages. County average gas prices are updated daily to reflect changes in price. For metro averages, click here. Average Cost, or Per Unit Cost, is an economic term that describes the approximate cost incurred to manufacture one production unit. See typical electricity, water, sewer, and trash costs in Morgantown. Compare monthly utility bills for residents. Average cost is the cost per unit manufactured in a production run. To calculate it, divide all fixed costs and variable costs by the number of units produced. The average cost of living in Morgantown is $1677, which is in the top 35% of the most expensive cities in the world, ranked 3282nd out of 9294 in our global list, 2077th out of 2202 in the United States and 4th out of 7 in West Virginia. Average Costs are the per unit costs which explain the relationship between the cost and output in a realistic manner. These per-unit costs are obtained from Total Fixed Cost, Total Variable Cost, and Total Cost. When average cost is rising, marginal cost is greater than average cost. When average cost is neither rising nor falling (at a minimum or maximum), marginal cost equals average cost. Calculate average cost per unit from total costs and quantity. Optionally enter a selling price to see profit per unit, margin, and markup instantly. Average cost is a concept that helps businesses and consumers understand how much it costs to produce or purchase a certain quantity of a good or service.