Computing the average variable cost

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Complete the table and answer the question:

a) What happens to the average variable cost, when the quantity produced is equal to 2? Explain your answer in detail.

quantity produced

Total Variable Cost

Average Variable Cost

Total cost

Average Total Cost

Marginal cost

0

$0

 

$10

 

 

1

$4

 

$14

 

 

2

$6

 

$16

 

 

3

$11

 

$21

 

 

4

$28

 

$38

 

 

5

$46

 

$56

 

 

 

 

Reference no: EM133083108

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