The following table shows the total output, number of workers employed, variable costs, and fixed costs of a firm.

-Refer to the table above.What is the average variable cost of producing 86 units of the good?

Question

The following table shows the total output, number of workers employed, variable costs, and fixed costs of a firm.
 
-Refer to the table above.What is the average variable cost of producing 86 units of the good?

Quizplus · Accepted Answer

Average variable cost = Total variable cost / Total outputTotal variable cost = $30Total output = 86 unitsAverage variable cost = $30 / 86 units = $0.35

The Following Table Shows the Total Output, Number of Workers