Exhibit 7-14 Total Cost Curve
-In Exhibit 7-14, what is the average variable cost when producing 10 units of output?

Name: Exhibit 7-14 Total Cost Curve -In Exhibit 7-14, what is the average variable cost when producing 10 units of output?
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Question

Exhibit 7-14 Total Cost Curve 
-In Exhibit 7-14, what is the average variable cost when producing 10 units of output?

Quizplus · Accepted Answer

To find average variable cost, we need to divide the total variable cost by the quantity of output. At 10 units of output, the total variable cost appears to be approximately $43. Dividing this by 10 units of output gives an average variable cost of $4.30.