-The above table shows the total product schedule for the campus book store. If employees are paid $12 per hour, assuming there are no other variable costs, then the average variable cost of selling books will reach its minimum at
A) 58 books sold per hour.
B) 59 books sold per hour.
C) 73 books sold per hour.
D) 83 books sold per hour.

Question

-The above table shows the total product schedule for the campus book store. If employees are paid $12 per hour, assuming there are no other variable costs, then the average variable cost of selling books will reach its minimum at
A) 58 books sold per hour. 
B) 59 books sold per hour. 
C) 73 books sold per hour. 
D) 83 books sold per hour.

Quizplus · Accepted Answer

The average variable cost (AVC) is minimized when the marginal product of labor is maximized. This typically occurs at the point where the increase in output per additional unit of labor starts to decline. In this scenario, it is likely at 73 books sold per hour.

-The Above Table Shows the Total Product Schedule for the Campus