-Refer to the above table. At what quantity of labor does the average variable cost curve start to increase?
A) After 1 unit
B) After 2 units
C) After 3 units
D) After 6 units

Question

-Refer to the above table. At what quantity of labor does the average variable cost curve start to increase?
A) After 1 unit 
B) After 2 units 
C) After 3 units 
D) After 6 units

Quizplus · Accepted Answer

The average variable cost (AVC) curve starts to increase when the marginal cost (MC) of producing an additional unit is greater than the AVC. This typically occurs after the point of diminishing returns, which is often after 3 units of labor.

-Refer to the Above Table