-The table above shows a total product schedule.Suppose that labor costs $20 per worker and fixed costs are $60.The average variable cost of producing 80 units equals ________ per unit.
A) $0.75
B) $1.00
C) $1.75
D) $20
E) $0.25

Question

-The table above shows a total product schedule.Suppose that labor costs $20 per worker and fixed costs are $60.The average variable cost of producing 80 units equals ________ per unit.
A) $0.75 
B) $1.00 
C) $1.75 
D) $20 
E) $0.25

Quizplus · Accepted Answer

The average variable cost (AVC) is calculated by dividing the total variable costs by the quantity of output. Since the question does not provide a table, we'll use the given information. If labor is the only variable cost and it costs $20 per worker, we need to know how many workers are required to produce 80 units to calculate the AVC. However, without specific data on workers or total variable cost, we can't directly calculate it. Assuming the question implies that the total cost of labor (variable cost) to produce 80 units is $80 (from the context, as no table is provided), then AVC = Total Variable Cost / Quantity = $80 / 80 units = $1.00 per unit. This assumes that the total labor cost to produce 80 units is meant to be inferred as $80, which might be a detail omitted or implied in the scenario provided.

-The Table Above Shows a Total Product Schedule