-The Above Table Gives Some Cost Data for Peter's Pickles

question 281

Multiple Choice

-The above table gives some cost data for Peter's Pickles. Peter's fixed cost is $20. Average variable cost (AVC) is lowest when output is equal to

• A) 1 barrel of pickles.
• B) 2 barrels of pickles.
• C) 3 barrels of pickles.
• D) 4 barrels of pickles.

---

Definitions:

FIFO Perpetual

An accounting method where goods are sold based on the order they were purchased or produced; "FIFO" stands for "first in, first out," and "perpetual" means the inventory records are updated continuously.