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What is the value of M? a. $560 b. $510 c. $440 d. $170 Bob's bulldozers cost table...

Question:

What is the value of M?

a. $560

b. $510

c. $440

d. $170

Bob's bulldozers cost table

QuantityTotal costFixed costVariable costMarginal costAverage fixed costAverage variable costAverage total cost
0$50$50$0----
1$150ABCDEF
2GHI$130JKL
3MNOPQ$170R

Variable cost

Variable cost is the actual cost of production changing with either increasing or decreasing production. The variable cost is considered for short-run competitive market pricing. The minimization of variable cost makes production giving good returns.

Answer and Explanation: 1

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a. $560

For the value of M, we need:

Average variable cost (AVC) for output 3 I $170. Total variable cost (TVC) is:

{eq}\begin{align*} TVC &=...

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

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Chapter 13 / Lesson 8
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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.


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