Average variable cost

From Wikipedia, the free encyclopedia

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{\text{TVC}}{\text{Output}} = \text{AVC}

Where:

  • TVC = Total Variable Cost
  • AVC = Average Variable Cost

Average variable cost plus average fixed cost equals average total cost:

AVC + AFC = ATC.

[edit] See also

 This economics or finance-related article is a stub. You can help Wikipedia by expanding it.