You run a business producing picture frames.This month,your total cost of production is $10,000,your variable cost of production is $6,000,and you produce 3,000 picture frames.It follows that average _____ cost is _____.
A)variable;$2
B)total;$3
C)total;$1
D)fixed;$1

Question

Quizplus · Accepted Answer

The average variable cost is calculated by dividing the total variable cost by the number of units produced: $6,000 / 3,000 = $2.

You Run a Business Producing Picture Frames