Use the following to answer question:
-(Table: Output and Marginal Cost) Look at the table Output and Marginal Cost. After graduation you achieve your dream of opening an art shop that specializes in selling mud statues. How many statues should you produce to minimize your average variable costs?
A) two
B) three
C) four
D) five

Question

Use the following to answer question: 
-(Table: Output and Marginal Cost) Look at the table Output and Marginal Cost. After graduation you achieve your dream of opening an art shop that specializes in selling mud statues. How many statues should you produce to minimize your average variable costs?
A) two 
B) three 
C) four 
D) five

Quizplus · Accepted Answer

To minimize average variable costs, you should produce the quantity where marginal cost is equal to average variable cost. This typically occurs at the lowest point of the average variable cost curve, which is often at the point where marginal cost is rising. In this scenario, producing four statues is likely the point where average variable costs are minimized.

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