refer to the following:

The wage rate is $600 and total fixed cost is $15,000.
-When there are 40 workers, what is average variable cost?
A) $0.23
B) $5.00
C) $4.10
D) $6.00
E) $12.00

Question

refer to the following:
  
The wage rate is $600 and total fixed cost is $15,000.
-When there are 40 workers, what is average variable cost?
A) $0.23 
B) $5.00 
C) $4.10 
D) $6.00 
E) $12.00

Quizplus · Accepted Answer

The average variable cost (AVC) is calculated by dividing the total variable costs by the quantity of output produced. Without specific details on the total variable costs or the output quantity, it's impossible to directly calculate the AVC from the information provided. However, if this question is based on a specific dataset or example where it was determined that when there are 40 workers, the AVC equals $5.00, then the correct answer would be based on that specific context.

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