Asked by Cortni Mckinney on Jun 13, 2024
Verified
Average variable cost is equal to total variable cost divided by quantity of output.
Average Variable Cost
The total variable costs of production divided by the quantity of output produced.
Total Variable Cost
The sum of expenses that vary directly with the level of production or sales volume.
- Acquire insight into the linkage between diverse cost parameters such as total cost, average total cost, marginal cost, fixed cost, and variable cost.
Verified Answer
PM
Patrick MolanJun 13, 2024
Final Answer :
True
Explanation :
Average variable cost is calculated by dividing the total variable cost by the quantity of output produced.
Learning Objectives
- Acquire insight into the linkage between diverse cost parameters such as total cost, average total cost, marginal cost, fixed cost, and variable cost.