Exhibit 21-11 Refer to Exhibit 21-11. Average variable cost at two units of output is
A)$50.
B)$60.
C)$100.
D)$110.
E)There is not enough information provided to answer this question.

Question

Exhibit 21-11  Refer to Exhibit 21-11. Average variable cost at two units of output is
A)$50. 
B)$60. 
C)$100. 
D)$110. 
E)There is not enough information provided to answer this question.

Quizplus · Accepted Answer

Average variable cost is calculated by dividing total variable cost by the level of output. At two units of output, the total variable cost is $120 and dividing by 2 gives an average variable cost of $60.