We learned that **ATC = TC ÷ Q **, so **TC = ATC x Q**. At any level of output, the height of the **ATC** curve is Average Total Cost for that level of output.
On the
graph shown to the right, **ATC**_{1} is the Average Total Cost at **Q**_{1} so the **shaded area** is **ATC**_{1} x Q_{1} and represents the total cost of producing **Q**_{1} units
of output.

**ATC**_{2} is the Average Total Cost at **Q**_{2} so the **shaded area** equal to **ATC**_{2} x Q_{2} represents the total cost of producing **Q**_{2} units
of output.

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