-Refer to the above table. At what quantity of labor does the average variable cost curve start to increase?
A) after 1 unit
B) after 2 units
C) after 3 units
D) after 6 units

Question

-Refer to the above table. At what quantity of labor does the average variable cost curve start to increase?
A) after 1 unit 
B) after 2 units 
C) after 3 units 
D) after 6 units

Quizplus · Accepted Answer

The average variable cost (AVC) curve starts to increase when additional units of labor result in less efficient production, typically due to the law of diminishing marginal returns. This usually occurs after a certain number of units of labor have been added, where each additional unit of labor adds less to output than the previous unit. Without the specific table data, a general understanding is that after 3 units, the AVC may start to increase as it's a common point in many production processes for diminishing returns to begin.

-Refer to the Above Table