Asked by Dominic Vojvoda on Jul 07, 2024

verifed

Verified

(Figure: Short-Run Costs II) Use Figure: Short-Run Costs II.At 6 units of output,average variable cost is approximately:

A) $100.
B) $120.
C) $200.
D) $250.

Average Variable Cost

The cost a company incurs to produce one additional unit of a product, calculated by dividing the total variable costs by the number of units produced.

  • Analyze the average fixed, variable, and total financial obligations with provided specifics.
verifed

Verified Answer

AE
Amera EtayyimJul 08, 2024
Final Answer :
B
Explanation :
At 6 units of output, the average variable cost is approximately $120, as it is the point where the AVC curve intersects the total cost curve.