Average variable cost is:
A)variable cost per unit multiplied by output.
B)total variable cost divided by output.
C)the difference between average total cost and total variable cost.
D)the difference between total cost and total variable cost.

Question

Quizplus · Accepted Answer

Average variable cost is calculated by dividing the total variable cost by the output (or quantity of goods produced). This gives the cost of producing each unit, excluding fixed costs.

Average Variable Cost Is