Average Variable Cost (AVC)

$$\text{Average Variable Cost}=\frac{\text{Variable Costs}}{\text{Quantity}}=\frac{\text{VC}}{Q}$$

Or:

$$\text{AVC}=\frac{\text{VC}}{Q}$$

Where:

• $\text{VC}$ = Variable Costs
• $Q$ = Quantity of output