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 twelve microwave ovens are produced, average variable costs are
A) $16.67.
B) $41.67.
C) $66.67.
D) $166.67.

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 twelve microwave ovens are produced, average variable costs are
A) $16.67. 
B) $41.67. 
C) $66.67. 
D) $166.67.

Quizplus · Accepted Answer

Average variable cost (AVC) is calculated by dividing total variable cost (TVC) by the quantity of output produced. If the TVC for twelve microwave ovens is $500, then AVC = $500 / 12 = $41.67.

Refer to the Short-Run Information Provided in Figure 8