Scenario 13-5
A certain firm produces and sells staplers. Last year, it produced 7,000 staplers and sold each stapler for $6. In producing the 7,000 staplers, it incurred variable costs of $28,000 and a total cost of $45,000.
-Refer to Scenario 13-5.In producing the 7,000 staplers,the firm's average variable cost was

Question

Quizplus · Accepted Answer

Average variable cost is calculated as total variable cost divided by the quantity produced. 
Total variable cost = $28,000 
Quantity produced = 7,000 
Average variable cost = $28,000/7,000 = $4

Scenario 13-5 A Certain Firm Produces and Sells Staplers. Last Year, It