Question

The average variable cost is the result of ____________.

• A. Total variable cost and fixed cost.
• B. Output and marginal cost.
• C. Marginal cost and total variable cost.
• D. Total variable cost and output.

Hint:

To remember any "average" cost formula:
"Average" always means dividing the corresponding "Total" cost by the "Output" (Q):
- \(\text{Average Variable Cost (AVC)} = \frac{\text{Total Variable Cost (TVC)}}{\text{Output}}\).
- \(\text{Average Fixed Cost (AFC)} = \frac{\text{Total Fixed Cost (TFC)}}{\text{Output}}\).
- \(\text{Average Total Cost (ATC)} = \frac{\text{Total Cost (TC)}}{\text{Output}}\).

Answer 1

The Correct Option is D