We computed AVC as TVC ÷ Q. At any level of output, the height of the AVC curve is Average Variable Cost for that level of output. This means that, for any given level of output, TVC = AVC x Q
At Q1the height of the AVC curve, AVC1, gives Average Variable Cost for Q1 units of output. So, TVC at Q1 is just TVC1 = AVC1 x Q1 and is shown as the light green shaded area. The tan shaded area shows TVC at Q2, a higher level of output.
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