Acutlery manufacturer producer produces 200 units of output at a total cost of $1,500. if total variable costs are $500, the average variable cost (per unit) is $2.5 $3.00 $2.00 $1.00 $7.50

Given that production cost of 200 units is $1500 with a variable cost of $500, then the average variable cost per unit will be:
(variable cost)/(number of units)
=500/200
=$2.5 dollars per unit

A] $2.5

The answer is c. 7 (i think) i’m almost sure though

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