Asked by Dominic Vojvoda on Jul 07, 2024
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.
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.
Learning Objectives
- Analyze the average fixed, variable, and total financial obligations with provided specifics.