The data in the table is for a firm in which labour is the only variable cost and each unit of labour costs the same regardless of how many units are bought.

-Refer to the information above to answer this question.What is the value of AVC if 3 units of labour are used?

Question

The data in the table is for a firm in which labour is the only variable cost and each unit of labour costs the same regardless of how many units are bought.
 
-Refer to the information above to answer this question.What is the value of AVC if 3 units of labour are used?

Quizplus · Accepted Answer

To calculate the average variable cost (AVC), we need to divide the total variable cost by the quantity of labor used. From the table, we can see that the total variable cost for 3 units of labor is $20. Dividing $20 by 3 units of labor gives us an AVC of $6.67. Therefore, the best choice is C.

The Data in the Table Is for a Firm in Which