Exhibit 6-10 Short-run cost schedule for book publisher's hourly production $$\begin{array} { | c | c | r | }
\hline \begin{array} { c }
\text { Total } \
\text { Output }
\end{array} & \begin{array} { c }
\text { Total } \
\text { Variable Cost }
\end{array} & \begin{array} { c }
\text { Total } \
\text { Cost }
\end{array} \
\hline \text { 0 cases of books } &\$0 & \$ 200 \
1 & 100 & 300 \
2 & 150 & 350 \
3 & 250 & 450 \
4 & 450 & 650 \
\hline
\end{array}$$ In Exhibit 6-10, the average variable cost of producing 2 cases of books is:

Question

Exhibit 6-10 Short-run cost schedule for book publisher's hourly production $$\begin{array} { | c | c | r | } 
\hline \begin{array} { c } 
\text { Total } \
\text { Output }
\end{array} & \begin{array} { c } 
\text { Total } \
\text { Variable Cost }
\end{array} & \begin{array} { c } 
\text { Total } \
\text { Cost }
\end{array} \
\hline \text { 0 cases of books } &\$0 & \$ 200 \
1 & 100 & 300 \
2 & 150 & 350 \
3 & 250 & 450 \
4 & 450 & 650 \
\hline
\end{array}$$ In Exhibit 6-10, the average variable cost of producing 2 cases of books is:

Quizplus · Accepted Answer

The average variable cost (AVC) is calculated by dividing the total variable cost (TVC) by the total output. For 2 cases of books, TVC is $150. Thus, AVC = $150 / 2 cases = $75 per case.

Exhibit 6-10 Short-Run Cost Schedule for Book Publisher's Hourly Production