A cutlery manufacturer producer produces 200 units of output at a total cost of $1,500.If total variable costs are $500,the average variable cost (per unit)is ______.
A) $3.00
B) $7.50
C) $2.5
D) $1.00
E) $2.00

Question

Quizplus · Accepted Answer

Average variable cost (per unit) is obtained by dividing total variable cost by the related quantity. 500/200 is equal to $2.50.

A Cutlery Manufacturer Producer Produces 200 Units of Output at a Total