-The table above gives production information for Bob's Baseball Cap Company. Bob's total cost when zero caps are produced is $200 and workers cost $10 per hour. The average variable cost of producing 10 baseball hats per hour is
A) $1.
B) $2.
C) $20.
D) More information is needed to answer the question.

Question

-The table above gives production information for Bob's Baseball Cap Company. Bob's total cost when zero caps are produced is $200 and workers cost $10 per hour. The average variable cost of producing 10 baseball hats per hour is
A) $1. 
B) $2. 
C) $20. 
D) More information is needed to answer the question.

Quizplus · Accepted Answer

To find the average variable cost (AVC), we need to know the variable cost and the quantity produced. The variable cost is the cost of workers, which is $10 per hour. If 10 caps are produced per hour, the AVC is $10/10 = $1 per cap.

-The Table Above Gives Production Information for Bob's Baseball Cap