If there is only one variable input,average variable cost can be defined as the:
A) output's price divided by the input's average product.
B) output's price divided by the input's marginal product.
C) price of the variable input divided by its average product.
D) price of the variable input divided by its marginal product.
E) price of the variable input multiplied by its marginal product.

Question

Quizplus · Accepted Answer

Average variable cost (AVC) is calculated by dividing the cost of the variable input by the quantity of output produced (average product). Therefore, the correct definition is the price of the variable input divided by its average product.

If There Is Only One Variable Input,average Variable Cost Can