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The formula for average variable cost (AVC) is ?

Correct answer: D. TVC/q

  • A. DTVC/Dq
  • B. q/TVC
  • C. Dq/DTVC
  • D. TVC/q

Explanation

Average variable cost spreads total variable cost over the units produced, so AVC equals TVC divided by quantity, written as TVC/q. The derivative form represents marginal variable cost, not average variable cost.

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