Use Table 6.6 to answer this question.Assuming that the only variable input is labour and all units of labour cost the same,what is the value of average variable cost when it is at a minimum?

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Quizplus · Accepted Answer

When average variable cost is at its minimum, it occurs at the level of output where AVC intersects with MC. From Table 6.6, we can see that this occurs at a output level of 9 units, where AVC is $4.44. This is the lowest point of the AVC curve, and any level of output above or below 9 units will result in higher AVC values. Therefore, the answer is B, $4.44.