Slider owns a hamburger restaurant. Slider's minimum average variable cost is $ 10 at a quantity of 100 hamburgers, and his minimum average total cost is $ 15 at a quantity of 200 hamburgers. His total fixed cost is $ 300 . Use this information to answer the questions.

a. What is Slider's AVC when he sells 200 hamburgers?

b. At a quantity of 25 hamburgers, the average total cost curve is:

i. below average variable cost.

ii. decreasing.

iii. There is not enough information or none of the other answers is correct.

iv. increasing.

Slider runs a hamburger restaurant and wants to know Average Variable cost when 200 burgers are sold.

Total cost for 200 burgers is $15 which makes a total of $3,000 ($15 * 200 burgers)

Average Total Cost includes all costs i.e. variable and fixed.

Subtract fixed cost from Total Average cost to get only total variable cost.

$3,000 - $300 = $2,700

$2,700 is the total variable cost of 200 burgers.

$2,700 / 200 = $13.5

Average Variable Cost per hamburger is $13.5  

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1. $13.5

2. iv. increasing.

Explanation:

1. Average variable cost

Total cost = Average cost × Quantity

= 200 × $15

= $3,000

Variable cost = Total cost - Fixed cost

= $3,000 - $300

= $2,700

So,

Average variable cost = Variable cost ÷ Quantity

= $2,700 ÷ 200

= $13.5

2. The quantity of hamburgers is 250 hamburgers the total curve is increasing.

Note :- we assume 250 hamburgers instead of 25 hamburgers because it is misprint.

answer; i believe the correct answer is (sales promotion;

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

                                          hope it