variable cost definition economics
In economics, average variable cost (AVC) is a firm's variable costs (labor, electricity, etc.) divided by the quantity of output produced.Variable costs are those costs which vary with output. where VC = variable cost, AVC = average variable cost, and Q = quantity of output produced.Average variable cost plus average fixed cost equals average total cost :ariable costs are those costs which vary with output. where VC = variable cost, AVC = average variable cost, and Q = quantity of output produced.