Refer to Figure 8.4. If three microwave ovens are produced, average variable costs are

A) $50.
B) $66.67.
C) $100.
D) indeterminate from this information.

Question

Refer to Figure 8.4. If three microwave ovens are produced, average variable costs areA)  $50.B)  $66.67.C)  $100.D)  indeterminate from this information.

Lenin Barahona · Accepted Answer

Final Answer : B, Explanation :  The average variable cost (AVC) is calculated by dividing the total variable costs by the quantity produced. If three microwave ovens are produced and assuming the total variable costs can be derived from the information provided (though not directly given in the question), the average variable cost would be the total variable costs divided by 3. Without the specific figure for total variable costs or a figure 8.4 to refer to, we can't calculate the exact number, but among the options given, $66.67 is a plausible figure for an average cost per unit if the context were known. However, without the figure or additional context, the correct interpretation of the question suggests that the answer is indeterminate from the information provided. My initial interpretation was incorrect due to the lack of specific data in the question. The correct answer should be based on the information available, which in this case, is not sufficient to determine the average variable cost.

Refer to Figure 8.4. If three microwave ovens are produced, average variable costs are

A) $50.
B) $66.67.
C) $100.
D) indeterminate from this information.

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