FormulaDen.com

Physics Chemistry Math Chemical Engineering Civil Electrical Electronics Electronics and Instrumentation Materials Science Mechanical Production Engineering Financial Health

Average Variable Cost Formula

Fx Copy

LaTeX Copy

Average Variable Cost is a metric used in economics to represent the average cost incurred by a firm to produce one unit of output, taking into account only the variable costs. Check FAQs

AVC = \frac{TVC}{Q}

AVC - Average Variable Cost?TVC - Total Variable Cost?Q - Quantity of Each Order?

Average Variable Cost Example

With values

With units

Only example

Here is how the Average Variable Cost equation looks like with Values.

Here is how the Average Variable Cost equation looks like with Units.

Here is how the Average Variable Cost equation looks like.

400 = \frac{20000}{50}

400 = \frac{20000}{50}

400 = \frac{20000}{50}

Tip: Use pencil ( Pencil

) icon above to edit Input Values and Units.

Calculate

Recalculate

Solution

Copy

Reset

You are here -

Home » Category

Financial » Category

Economy » Category

Microeconomics » fx Average Variable Cost

Average Variable Cost Solution

Follow our step by step solution on how to calculate Average Variable Cost?

FIRST Step Consider the formula

AVC = \frac{TVC}{Q}

Next Step Substitute values of Variables

∴

AVC = \frac{20000}{50}

Next Step Prepare to Evaluate

∴

AVC = \frac{20000}{50}

LAST Step Evaluate

∴

AVC = 400

Average Variable Cost Formula Elements

Variables

Average Variable Cost

Average Variable Cost is a metric used in economics to represent the average cost incurred by a firm to produce one unit of output, taking into account only the variable costs.

Symbol: AVC

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Average Variable Cost

Total Variable Cost

Total Variable Cost refers to the cost which varies when the output varies or changes.

Symbol: TVC

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Total Variable Cost

Quantity of Each Order

The Quantity of Each Order refers to the number of units or items that are purchased or acquired in a single transaction or order.

Symbol: Q

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Quantity of Each Order

Other formulas in Microeconomics category

Go Average Total Cost

ATC = \frac{Tc}{Q}

Go Gross Domestic Product

GDP = PCN + GI + G + NX

Go Rate of Inflation

R = \frac{ECPI - ICPI}{ICPI}

Go Net Exports of Goods and Services

NX = X - M

How to Evaluate Average Variable Cost?

Average Variable Cost evaluator uses Average Variable Cost = Total Variable Cost/Quantity of Each Order to evaluate the Average Variable Cost, Average Variable Cost is the average of total variable cost per unit of output. Average Variable Cost is denoted by AVC symbol.

How to evaluate Average Variable Cost using this online evaluator? To use this online evaluator for Average Variable Cost, enter Total Variable Cost (TVC) & Quantity of Each Order (Q) and hit the calculate button.

FAQs on Average Variable Cost

What is the formula to find Average Variable Cost?

The formula of Average Variable Cost is expressed as Average Variable Cost = Total Variable Cost/Quantity of Each Order. Here is an example- 400 = 20000/50.

How to calculate Average Variable Cost?

With Total Variable Cost (TVC) & Quantity of Each Order (Q) we can find Average Variable Cost using the formula - Average Variable Cost = Total Variable Cost/Quantity of Each Order.

Let Others Know

✖

Facebook

Twitter

Copied!

: Value
: Unit

Average Variable Cost Formula

Average Variable Cost Example

Average Variable Cost Solution

Average Variable Cost Formula Elements

Other formulas in Microeconomics category

How to Evaluate Average Variable Cost?

FAQs on Average Variable Cost

Variable Name