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equation to calculate average variable cost. FC is the fixed cost. To calculate variable cost we subtract the fixed cost from the total cost.
Average Costs And Curves Microeconomics from courses.lumenlearning.com
Formula to calculate AVC. Formula to calculate variable cost. In the first given equation total variable cost is 34Q3 24Q so average variable cost is 34Q2 24.
Average Variable Cost is calculated using the formula given below Average Variable Cost Raw Material Cost Direct Labor Cost Variable Manufacturing Overhead Number of Units Produced Average Variable Cost 5 million 3 million 1 million 60000 Average Variable Cost 150.
Where C x is the total cost at x number of units. Where FC is the fixed cost. VC is the average variable cost per unit. In the second equation total variable cost is Q logQ2 2 so average variable cost is 1 logQ2Q 2Q.
