# 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.:$frac\left\{ ext\left\{TVC\left\{ ext\left\{Output = ext\left\{AVC\right\}$Where:
* TVC = Total Variable Cost
* AVC = Average Variable Cost

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

ee also

*Variable cost
*Fixed cost

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