Suppose a firm is producing 500 units of output,incurring a total cost of $700 000 and total fixed cost of $100 000.It can be concluded that average variable cost is
A)$1200.
B)$1600.
C)$1400.
D)$600.
E)$200.

Question

Quizplus · Accepted Answer

Average variable cost = Total variable cost / Output = (Total cost - Total fixed cost) / Output = ($700,000 - $100,000) / 500 = $1,200

Suppose a Firm Is Producing 500 Units of Output,incurring a Total