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Question
Refer to the following table. What is the average variable cost of producing three units of the good?
| Output | Total Fixed Cost | Total Variable Cost | Total Cost | Average Fixed Cost | Average Variable Cost | Average Total Cost | Marginal Cost |
| 1 | u2014 | u2014 | u2014 | u2014 | u2014 | u2014 | u2014 |
| 2 | u2014 | u2014 | $600 | u2014 | u2014 | u2014 | u2014 |
| 3 | u2014 | u2014 | u2014 | u2014 | ????? | u2014 | $20 |
| 4 | u2014 | $440 | u2014 | u2014 | u2014 | u2014 | u2014 |
| 5 | $500 | u2014 | u2014 | u2014 | u2014 | u2014 | u2014 |
a. $80
b. $120
c. $140
d. $20
e. $420
Answer
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