Refer to the short-run information provided in Figure 8.5 below to answer the question(s) that follow

Figure 8.5
-Refer to Figure 8.4. If two microwave ovens are produced, average variable costs are
A) $75.
B) $150.
C) $225.
D) indeterminate from this information.

Question

Refer to the short-run information provided in Figure 8.5 below to answer the question(s) that follow

Figure 8.5
-Refer to Figure 8.4. If two microwave ovens are produced, average variable costs are
A) $75. 
B) $150. 
C) $225. 
D) indeterminate from this information.

Quizplus · Accepted Answer

At two units of production, the total variable cost is $150, as indicated by the graph. To find the average variable cost, divide the total variable cost by the quantity produced: $150 / 2 = $75.

Refer to the Short-Run Information Provided in Figure 8