The average cost of Q, FC, VC, TC, AFC ALL
Answer (1)
Q = Quantity of outputFC = Fixed CostVC = Variable CostTC = Total Cost = FC + VCAFC = Average Fixed Cost = FC / QAVC = Average Variable Cost = VC / QATC = Average Total Cost = TC / QThese formulas help in understanding how much it costs to produce one unit, and how fixed and variable costs behave at different levels of production.
