Asked by Giovanni Figueroa on Jul 23, 2024
Verified
Average variable cost is:
A) variable cost per unit multiplied by quantity.
B) total variable cost divided by quantity.
C) the difference between average total cost and total cost.
D) the difference between total cost and total fixed cost.
Average Variable Cost
The total variable costs of production divided by the quantity of output produced, representing the variable cost per unit of output.
Total Variable Cost
The sum of all variable costs for a given level of production or output.
Total Cost
The complete sum of money required for the production of goods or services, including expenses that stay the same and those that vary.
- Master the ideas behind average total, average variable, and average fixed costs.
Verified Answer
PM
Priya MedurJul 25, 2024
Final Answer :
B
Explanation :
Average variable cost is calculated by dividing the total variable cost by the quantity of output produced. This gives the cost of producing each unit of output, excluding fixed costs.
Learning Objectives
- Master the ideas behind average total, average variable, and average fixed costs.