A firm, producing six units of output, has an average total cost of R200 and has to pay R300 to...

Question:

A firm, producing six units of output, has an average total cost of R200 and has to pay R300 to its fixed factors of production. The average variable cost is:

1. R50.

2. R150.

3. R200.

4. R300.

Average Variable Cost:

The average variable cost (AVC) is the variable cost incurred per each unit. Total variable cost changes according to the output quantity such as fuel cost, labor cost, raw material cost, etc.

Answer and Explanation: 1

Become a Study.com member to unlock this answer!

View this answer

The average variable cost is 2). R150.

Data Provided-

  • Average Total Cost= R200
  • Fixed Cost = R300
  • Amount of output units = 6 units

{eq}Average\:...

See full answer below.


Learn more about this topic:

Loading...
Average Variable Cost (AVC): Definition, Function & Equation

from

Chapter 13 / Lesson 8
189K

Learn the definition and applications of average variable cost, the average variable cost formula, and how to calculate the average variable cost using its formula.


Related to this Question

Explore our homework questions and answers library