Average variable cost is the ratio of:

A) total cost to marginal cost.
B) total cost to the amount of variable input.
C) variable cost to the quantity of output.
D) marginal cost to the quantity of output.

Average Variable Cost

It is calculated by dividing total variable costs by the total output produced, representing the variable cost per unit of output.

Variable Cost

Costs that change with the level of production or business activity, such as materials and labor.

Quantity of Output

Refers to the total amount of goods or services produced by a firm or an economy within a specific time period.