-In the Above Table, What Is the Average Variable Cost

question 5

Multiple Choice

-In the above table, what is the average variable cost to produce 2 units of output?

• A) $25
• B) $60
• C) $55
• D) $20

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Definitions:

Constant

A value that does not change in mathematical expressions or economic models, acting as a fixed point of reference.

Diminishing

A principle indicating that as more of a good or service is consumed, the marginal benefit to the consumer decreases.

Behavioral Economics

A field of economic research that examines the effects of psychological, cognitive, emotional, cultural, and social factors on economic decisions.

Rational

In economics, refers to individuals making decisions that will provide them with the greatest benefit or satisfaction given their limited resources.