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Calculate the Average Variable Cost (AVC) given Total Variable Costs (TVC) of R4100 and a quantity produced of 100 products.

Economics

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3.8

Step 1: Recall the total variable costs (TVC) for Ms Sihle's business from the previous question (3.4).
The total variable costs (TVC) were R4100\text{R}4100.

Step 2: Identify the quantity produced.
The quantity produced is 100 products.

Step 3: State the formula for Average Variable Cost (AVC).

AVC=TVCQuantity (Q)\text{AVC} = \frac{\text{TVC}}{\text{Quantity (Q)}}

Step 4: Substitute the values and calculate.

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