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What is the definition of average variable cost? Multiple choice question. Total variable cost divided by output (Q) Total variable cost divided by total fixed cost (TFC) Total variable cost divided by change in output (Q) Total variable cost divided by marginal cost (MC)

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Tundexi Tundexi

14-07-2022

The definition of average variable cost is total variable cost divided by output (Q).

What is an average variable cost?

This refers to a firm's variable costs such as labor, electricity divided by the quantity of output produced.

Hence, it is also defined as total variable cost divided by output (Q).

Therefore, the Option A is correct.

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