Refer to the information provided in Figure 8.4 below to answer the questions that follow. Figure 8.4
-Refer to Figure 8.4. If three microwave ovens are produced, average variable costs are
A) $166.67.
B) $333.33.
C) $500.
D) $1,500.

Question

Refer to the information provided in Figure 8.4 below to answer the questions that follow.  Figure 8.4
-Refer to Figure 8.4. If three microwave ovens are produced, average variable costs are
A) $166.67. 
B) $333.33. 
C) $500. 
D) $1,500.

Quizplus · Accepted Answer

The average variable cost (AVC) is calculated by dividing the total variable cost (TVC) by the quantity of output produced. If the total variable cost for producing three microwave ovens is $500, then the AVC is $500 / 3 = $166.67.

Refer to the Information Provided in Figure 8