To select the average variable cost, the firm's variable costs are divided by the amount of output.
In Economics, the average irregular cost is the variable cost per unit. Average variable cost is defined by dividing the total variable cost by the output. The firms use the average varying cost to decide when to stop their presentation in the short term.
More specifically, unstable costs are equal to the total cost of materials plus the total cost of labor, which are the two main types of variable costs. Alternatively, variable costs can also be estimated by multiplying the cost per unit by the total number of units created.
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