Table 13-11

-Refer to Table 13-11.What is average variable cost when output is 50 units?

Question

Table 13-11
 
-Refer to Table 13-11.What is average variable cost when output is 50 units?

Quizplus · Accepted Answer

From the table, we can see that when output is 50 units, the Total Variable Cost (TVC) is $200 and the Average Variable Cost (AVC) is $4.00, which is calculated by dividing TVC by the output (AVC=TVC/Q). This is the minimum point of AVC curve, where it intersects with the Marginal Cost curve. At this output level, the firm is operating at its minimum efficient scale and minimizing per-unit production cost. Therefore, option B is the best choice.

Table 13-11 -Refer to Table 13-11.What Is Average Variable Cost When Output