Define Average Variable Cost
Define Average Variable Cost. And also state its formula.
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Average Variable Cost (AVC): It is the product of firm’s total variable cost divided by the total number of units of product generated, or TVC/Q. This is per unit cost. Average variable cost is differentiated from average total cost in short run by the presence of fixed costs, or ATC – AVC = AFC. Illustrations of variable costs would comprise materials, energy, labor, and so on.
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When Christmas trees are a constant cost industry and such firm is typical, in that case the industry’s long-run supply curve is curve that is: (w) A. (x) B. (y) C. (z) E. Discover Q & A Leading Solution Library Avail More Than 1440232 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1941351 Asked 3,689 Active Tutors 1440232 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
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