The average variable costs at the firm’s current output level, the average product of labor and the monthly wage the firm pays each worker.
Concept Introduction:
Total variable cost: It is the sum of all variable cost in the production; the variable costs vary with the level of output.
TVC
Average product: The average product is the average of the total product produced by the given variable input. The average product is found out by dividing the total product by the variable input.
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