Average variable cost is the ratio of:
A)total cost to the marginal cost.
B)variable to fixed inputs.
C)variable cost to the quantity of output.
D)fixed costs to variable cost.

Question

Quizplus · Accepted Answer

Average variable cost is calculated by dividing variable cost by the quantity of output. This gives us an idea of how much it costs to produce each unit of output, and helps us determine at what level of output a firm can break even or achieve profits.

Average Variable Cost Is the Ratio Of