ECONOMICS
PROFIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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total cost divided by the quantity of the variable factor employed
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total variable cost divided by the quantity of the variable factor employed
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total variable cost divided by the output produced
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the addition to total variable cost by producing one more unit of output
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Detailed explanation-1: -In Economics, the average variable cost is the variable cost per unit. Average variable cost is determined by dividing the total variable cost by the output. The firms use the average variable cost to determine when to stop their production in the short term.
Detailed explanation-2: -Average variable cost (AVC) is the variable cost per unit of total product (TP). To calculate AVC, divide variable cost at a given total product level by that total product. This calculation yields the cost per unit of output. AVC tells the firm whether the output level is potentially profitable.
Detailed explanation-3: -The average variable cost can be considered as the total variable cost per unit of output. If you divide the total variable cost by the total output produced, then you receive the average variable cost (AVC).
Detailed explanation-4: -Average variable cost (AVC) is calculated by dividing variable cost by the quantity produced.
Detailed explanation-5: -Ans: The variable cost per unit of products or services is referred to as the average variable cost. The variable cost is the cost that fluctuates directly with output and is computed by dividing the total variable cost for the period by the number of units produced. Formula: TOTAL VARIABLE COST/UNITS PRODUCED.