Refer to the information provided in Figure 8.5 below to answer the questions that follow. Figure 8.5
-Refer to Figure 8.5. If three ovens are produced, average variable costs are
A) $166.67.
B) $83.33.
C) $500.
D) $1,500.

Question

Refer to the information provided in Figure 8.5 below to answer the questions that follow.  Figure 8.5
-Refer to Figure 8.5. If three ovens are produced, average variable costs are
A) $166.67. 
B) $83.33. 
C) $500. 
D) $1,500.

Quizplus · Accepted Answer

To find the average variable cost, we divide the total variable cost by the quantity of output. From the graph, we can see that the total variable cost for producing three ovens is $250. Therefore, the average variable cost for producing three ovens is $250/3 = $83.33.

Refer to the Information Provided in Figure 8