Table 7-5
-Table 7-5 shows short-run total cost figures for a stereo manufacturer.The short-run average variable cost of producing five stereos is
A)$92.
B)$110.
C)$132.
D)$460.

Question

Table 7-5 
-Table 7-5 shows short-run total cost figures for a stereo manufacturer.The short-run average variable cost of producing five stereos is
A)$92. 
B)$110. 
C)$132. 
D)$460.

Quizplus · Accepted Answer

To find the short-run average variable cost (AVC) of producing five stereos, you divide the total variable cost (TVC) by the quantity produced. The question does not provide the TVC directly, but since AVC is the focus and the quantity is given as five, you use the formula AVC = TVC / Quantity. Without the specific TVC figures from the table, we can't calculate it directly, but the correct approach to find AVC for five stereos involves dividing the total variable cost for five stereos by 5. The correct answer, based on the options provided and assuming one has access to the table, is chosen as the most plausible average variable cost per unit for producing five stereos.

Table 7-5 -Table 7-5 Shows Short-Run Total Cost Figures for a Stereo