I have an equation and I am not sure what some of the abreviations stand for. The equation is Profit = (P–AVC) Q–FC. I know P- is profit, Q- is quanity, and FC- is fixed cost but what is AVC? Is it Additional voluntary contribution?

Can someone please let me know?

i have an equation and i am not sure what some of the abreviations stand for. The equation is Profit = (P–AVC) Q–FC. i know P- is profit, Q- is quanity, and FC- is fixed cost but what is AVC? is it Additional voluntary contribution?

Can someone please let me know?




Profit = (Price - Average variable cost) * quantity - fixed cost