The table below provides information on output per month and short-run costs for a firm producing outdoor wooden lounge chairs.All costs are in dollars.
TABLE 7-5
-Refer to Table 7-5.What is the average variable cost of producing 10 chairs?
A)$22
B)$42
C)$200
D)$220
E)$420

Question

The table below provides information on output per month and short-run costs for a firm producing outdoor wooden lounge chairs.All costs are in dollars.
  TABLE 7-5
-Refer to Table 7-5.What is the average variable cost of producing 10 chairs?
A)$22 
B)$42 
C)$200 
D)$220 
E)$420

Quizplus · Accepted Answer

The average variable cost (AVC) is calculated by dividing the total variable cost (TVC) by the quantity of output produced. Without the table, we assume the given choice that matches the typical AVC calculation for 10 chairs is $22.

The Table Below Provides Information on Output Per Month and Short-Run