Knowbit Solutions

Average Variable Cost (AVC): Average variable cost (AVC) is a firm's variable costs (labor, electricity, etc.) divided by the quantity (Q) of output produced.

Fixed Costs:
Fixed costs are those costs that must be incurred in fixed quantity regardless of the level of output produced

Normative economics - Normative economics considers "what ought to be"--value judgments, or goals, of public policy. Positive economics, by contrast, is the analysis of facts and behavior in an economy, or "the way things are."