Answer:
As, per To the Given Information:
Minimum AVC = $10, When Quantity = 100 Hamburgers
Minimum (AC) = $15, When Quantity = 200 Hamburgers
Fixed Cost = $300
To find out the Average variable cost when the quantity of 200 hamburgers sold, we have to compute the Total Cost;
Total Cost = Average Cost × Quantity
Total Cost =15 x 200
Total Cost = 3,000
Now, Variable Cost (VC)
Variable Cost = Total Cost - Fixed Cost
Variable Cost = 3,000 - 300
Variable Cost = 2,700
Thus,
AVC when Quantity sold = 200 hamburgers
Average Variable Cost = Variable Cost / Quantity
Average Variable Cost = 2,700 / 200
Average Variable Cost =13.5
Therefore, the Average Variable Cost after selling 200 hamburgers is $13.5
