Refer to the table shown. The average variable cost of producing 5 units of output is: $\begin{array}{|c|c|}
\hline \text { Units of output } & \text { Total cost } \
\hline0 & 5 \
\hline 1 & 11 \
\hline 2 & 16 \
\hline 3 & 20 \
\hline 4 & 23 \
\hline 5 & 25 \
\hline 6 & 26 \
\hline
\end{array}$
A)$2.
B)$3.
C)$4.
D)$5.

Question

Refer to the table shown. The average variable cost of producing 5 units of output is: $\begin{array}{|c|c|}
\hline   \text { Units of output } & \text { Total cost } \
\hline0 & 5 \
\hline 1 & 11 \
\hline 2 & 16 \
\hline 3 & 20 \
\hline 4 & 23 \
\hline 5 & 25 \
\hline 6 & 26 \
\hline
\end{array}$
A)$2.
B)$3.
C)$4.
D)$5.

Quizplus · Accepted Answer

The average variable cost (AVC) is calculated by subtracting the total fixed cost from the total cost and then dividing by the quantity produced. The total fixed cost is the cost at 0 units of output, which is $5. The total cost of producing 5 units is $25. Therefore, the total variable cost for 5 units is $25 - $5 = $20. The AVC for 5 units is $20 / 5 = $4.

Refer to the Table Shown A)$2 B)$3

Refer to the Table Shown A)$2
B)$3