$\begin{array}{ccccccc}
&Variable &Total&&&& Marginal \
\text { Output } & \text { Cost } & \text { Cost } & \text { AFC } & \text { AVC } & \text { ATC } & \text { Cost } \
1 & 200 & & & & & \
2 & 300 & & & & & \
3 & 500 & & & & & \
4 & 800 & & & &
\end{array}$
-At an output of 3,AVC is
A)$133.
B)$167.
C)$200.
D)$500.
E)$800.

Question

Quizplus · Accepted Answer

The Average Variable Cost (AVC) at an output of 3 is calculated by dividing the total variable cost at that output level by the quantity of output. Given the total variable cost at an output of 3 is $500, and the output is 3 units, AVC = $500 / 3 = $166.67, which rounds to $167.

-At an Output of 3,AVC Is A)$133

-At an Output of 3,AVC Is
A)$133