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.

Question

Quizplus · Accepted Answer

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.

Average Variable Cost Is