Asked by Muhammad Haque on Jul 15, 2024
Verified
Variable cost divided by the quantity of output produced is _____ cost.
A) marginal
B) average total
C) average fixed
D) average variable
Average Variable Cost
Average Variable Cost is the total variable cost of production divided by the quantity of output produced, representing the variable cost per unit of output.
Variable Cost
Costs that are directly proportional to the level of output or production.
Quantity
The amount or number of a product or service that is available for use or sale.
- Understand the concepts of average total, average variable, and average fixed costs.
Verified Answer
KI
kainat iqtidarJul 21, 2024
Final Answer :
D
Explanation :
Average variable cost is calculated by dividing the total variable cost by the quantity of output produced.
Learning Objectives
- Understand the concepts of average total, average variable, and average fixed costs.