Use the following to answer question

-If the firms hires 5 workers and produces 5 units,the average variable costs equals
A)$10
B)$100
C)$800
D)Need more information

Question

Use the following to answer question
 
-If the firms hires 5 workers and produces 5 units,the average variable costs equals​
A)​$10 
B)$100 
C)$800 
D)​Need more information

Quizplus · Accepted Answer

Since we do not have information on the total cost, we cannot calculate the average variable cost. However, we can calculate the average variable cost per unit, which is given by: AVC = Total Variable Cost / Quantity. If we assume that the total cost is $4000 (based on the given information), then the average variable cost per unit is: AVC = $2000 / 5 units = $400 per unit.

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