If the average variable cost of the fifth hat is $50, then the total variable cost of five hats is
A) $10.
B) $250.
C) $1,800.
D) indeterminate from this information.

Question

Quizplus · Accepted Answer

The average variable cost of the fifth hat being $50 implies that the total variable cost for producing five hats is $250 (5 hats x $50/hat). This is because the average variable cost is the total variable cost divided by the quantity produced, assuming the cost per unit is constant.

If the Average Variable Cost of the Fifth Hat Is