Difference between revisions of "Average variable cost"
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| − | Average variable cost (AVC) is a firm or company's [[total variable cost]] divided by the quantity it produces: | + | '''Average variable cost''' (AVC) is a firm or company's [[total variable cost]] divided by the quantity it produces: |
: AVC = (total variable cost) / (quantity of output) | : AVC = (total variable cost) / (quantity of output) | ||
Latest revision as of 02:30, July 13, 2016
Average variable cost (AVC) is a firm or company's total variable cost divided by the quantity it produces:
- AVC = (total variable cost) / (quantity of output)
Average variable cost is also the average total cost minus the average fixed cost:
- AVC - ATC - AFC