Average variable cost

Average variable cost

Average variable cost (AVC) is an economics term to describe the total cost a firm can vary (labor, etc.) divided by the total units of output.:frac{ ext{TVC{ ext{Output = ext{AVC}Where:
* TVC = Total Variable Cost
* AVC = Average Variable Cost

Average variable cost plus average fixed cost equals average total cost:: ext{AVC} + ext{AFC} = ext{ATC}.

ee also

*Variable cost
*Fixed cost


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