Table 7-5
-Table 7-5 shows short-run total cost figures for a stereo manufacturer.At what output level does short-run average variable cost reach a minimum?
A)2
B)3
C)4

Question

Table 7-5 
-Table 7-5 shows short-run total cost figures for a stereo manufacturer.At what output level does short-run average variable cost reach a minimum?
A)2 
B)3 
C)4

Quizplus · Accepted Answer

Short-run average variable cost reaches a minimum at the output level where the marginal cost curve intersects the average variable cost curve from below. In this case, that occurs at an output level of 4 units, where the average variable cost is $35 per unit. Therefore, C is the best choice.

Table 7-5 -Table 7-5 Shows Short-Run Total Cost Figures for a Stereo