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Alika [10]
3 years ago
14

In order to determine the average variable cost, the firm's variable costs are divided by _______________________.

Business
1 answer:
emmasim [6.3K]3 years ago
3 0

Answer:

total output.

Explanation:

for example, a company manufactures 10,000 units of A. Its total variable costs are $50,000, and its total fixed costs are $25,000.

The average variable cost = $50,000 / 10,000 = $5 per unit of A

The average fixed cost = $25,000 / 10,000 = $2.50 per unit of A

The average total cost = $75,000 / 10,000 = $7.50 per unit of A

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