The total variable cost per unit of output is the average variable cost. Fixed cost is costs that do not vary with output like the rent of a building and so on. Variable cost is a cost that varies with output, and that includes labor cost and so on.
Variable cost is a direct cost, and total variable cost should be divided by output to get an average variable cost. Are you looking for details? Manuals as average variable cost homework answers will surely help you
Example of average variable cost
Output is 1, and a total variable cost is 100$. Then the average variable cost is 100$. If an output is 4 and a total variable cost is $100, then the average variable cost is $25.If total variable cost is $640 and output is 8, then the average variable cost is $80.
Assume that labor cost for production is $10 per worker on an hour rate basis and material cost is $ 2 per unit.If the aim is to produce one unit per hour then only one worker is needed, and total variable cost is $ 12, and average variable cost is $12 per hour.If three brushes are produced in one hour, average variable cost drops to $ 5, 33 per hour. This shows that average variable cost would keep on dropping if production is increased with the same set of worker in an hour.
Average variable cost should decrease when additional cost of production takes place. Average variable cost along with price would give enough clues about whether a firm should close down or not.
Average variable cost, when shown on a graph model, uses a U curve, and it would have negative slopes initially, and then it would reach minimum value and would grow once again to reach a maximum value. The curve in the graph supports the law of diminishing returns.
The total variable cost would rise when a company decides to go for maximum production. The reason is that more labor is needed. This happens in labor-intensive companies, and many companies who are starting to turn into automotive mode may not increase their total variable cost.
Many car companies may have to increase their production due to unsurpassed demand for their new model, and they have to take in extra labor and do extra overtime work that can increase cost. The benefits that would happen to the company when total variable cost and average variable cost increases are always studied in detail before a final decision is taken.
Why a student needs professional help
Student asked to complete average variable cost homework answers may find it difficult due to variety reasons
- The topic average variable costs are considered to be more technical, and it involves a lot of equations and complexities.
- A student would need to grasp the managerial economics better to get crack on average variable cost.
- Average variable cost is an important part of product pricing strategy and profit-making strategy. The complexities of these varied topics make sure that student needs to have a wide range of understanding to give a fair assessment of answer.
- Deadlines for assignments and homework should be met by students. Students would have much homework to be completed during the given time. That would mean students do not get more personal time to spend on this topic.
- Students can get an understanding of the topic when they engage online expert help. The reason is that online expert would explain the homework assignment in a simple language style that can be easily understood by student.
- Students would not get access to high-quality research materials. That can affect their writing. Online expert has access to many research journals, and they can use that information in homework. This will help student get good grade in average variable cost homework answers.
- A student would get error-free documents and would be 100% original. Use of graphs, tables, and other diagrams would ensure that answer is unique.
- Average variable cost requires graph, and other inputs that are close to real life business examples and online expert would ensure that these are given in written document.
- Students would have a unique writing style that would be presented to them, and this would impress faculty and chances of getting high grades are high.
Services offered to student in average variable cost homework answers
Students can contact online expert daily at any time, and they would be guided by a professional subject expert. Online expert ensures that only subject matter expert discusses the assignment question in detail and after that discussion would be taken forward on payment issue.
Online expert services are affordable, and payment is discussed along with payment options and the methods of paying are brought to the fore. Security concerns like data theft, cyber fraud are well addressed by an online expert, and the data that is passed onto the online expert like the card number and bank account number are kept secure and secret.
Online expert ensures that submission is done before the deadline and all professional editing is done on the document so that student gets good grades. Online expert ensures that revisions if any in the form of corrections and additions are done in average variable cost homework answers.
An online expert would help a student grasp the basics of writing homework and also ensure that subject is understood in detail. Online expert ensures that student gets good grades by ensuring that proper citations are used average variable cost homework answers.