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WAEC Economics 2000 Question 10

Question 10

Theory of Costs and Revenue

Dividing total variable cost by quantity of output gives

  1. A.Total Cost (TC)
  2. B.Total Fixed Cost (TFC)
  3. C.Variable Cost (VC)
  4. D.Average Variable Cost (AVC).
Show the answer and explanation

Answer: D (Average Variable Cost (AVC).)

Explanation

AVC = TVC ÷ output: the variable cost per unit produced.