Quantity

Total Cost ($)

0

12

1

20

2

26

3

30

4

37

5

45

6

54

7

64

What is the average variable cost when quantity is 6?

Question

Quantity

Total Cost ($)

0

12

1

20

2

26

3

30

4

37

5

45

6

54

7

64

What is the average variable cost when quantity is 6?

BlackTom AI · Accepted Answer

Let's parse the data and definitions carefully to compute the average variable cost.

First, identify fixed cost. In a typical cost table, total cost at zero quantity equals fixed cost since there is no production to incur variable costs. Here, when quantity is 0, Total Cost is 12, so Fixed Cost = 12.

Next, determine variable cost at quantity 6. Variable cost equals total cost minus fixed cost: VC(6) = TC(6) - FC = 54 - 12 = 42.

Now compute average variable cost (AVC) at quantity 6: AVC(6) = VC(6) / Q = 42 / 6 = 7.

For completeness, cross-check with nearby data to ensure consistency: if you compute VC for other quantities using the same FC, you should get VC values like TC - 12, e.g., at Q=1, VC = 20 - 12 = 8, etc. This confirms the approach and avoids misattributing fixed costs.

Thus, the calculated AVC at quantity 6 is 7.

ECON 2001.01 SP2025 (25209) Final exam

Quantity Total Cost ($) 0 12 1 20 2 26 3 30 4 37 5 45 6 54 7 64 What is the average variable cost when quantity is 6?

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