Variable costs depends on how much is used. Ex: water bill.
people can have a lot or not much but depends on how much.
The cost of quarrying granite is so variable, that it is impossible to give a precise figure.
While the overall average cost of living in Rhode Island for a year is approximately $31,000, the average resident spends $1,615 to $ 2,679 in a year to heat their home. Of course, there is always room to wiggle, depending on the size of one's home, where they are located, and the most obvious variable, usage.
Average cost of 1 regular size helium balloon: $1
X-ray telescopes usually cost anywhere from $600 to about $850 brand new but the average cost of an used x-ray telescope is $350 to about $500.
$1,000.00
Average Variable Cost = Total Variable Cost/ Quantity Average Cost = Average Fixed Cost + Average Variable Cost Average Cost = Total Cost/Quantity
the average variable cost curve and average cost curve are u- shaped because of the law of variable proportions.
When average variable costs equal to the average marginal cost, the average variable cost will be at the minimum point. i.e. lowest cost
Average total cost is the average of all your costs. This is your Fixed Costs and your Variable costs. Average Variable Cost is the average of your costs that can fluctuate.
decrease. Think about it this way, if you have a room full of people and you get their average height(average variable cost), and now each person that walks into the room(marginal cost) is shorter than the average, the average will drop.
Average total cost is the average of all your costs. This is your Fixed Costs and your Variable costs. Average Variable Cost is the average of your costs that can fluctuate.
To find the Average Variable Cost functions you need the following: ATC, TFC and TC.
we can subtract the AVC and we will get the MC
Total Variable Cost $4,196
When a firm attains minimum average variable cost, the number of units of labor it is using depends on the average product.
Not necessarily. Total Cost = Fixed Cost + Variable Cost; Variable Cost=f(Quantity) and if f`(Quantity)>0 it implies that as quantity produced rises variable cost would rise. Average Total Cost=Average Fixed Cost + Average Variable Cost. If initially the Total Cost function is more of an odd function (mostly it is) then the Average Cost will look more like a parabola i.e. it will tend to fall becuase the Fixed Cost gets thin but later that is overtaken by the increase in Variable Cost. But there are cases when Average Total Cost does fall continuously as quantity increases and these involve huge Fixed Costs like say Electric Supply Infrastructure. This is called natural monopoly.
average fixed will go down, average variable will remain the same, and average total will go down.