Question

For a home health care provider, labor is the only variable input. The following table shows the relationship between the number of workers and the number of health care visits that can be provided in a day. Each worker is paid $200 per day. Fled costs are $400 per day. workers #visits 3 pts 3 pts a ccording to the information from question equal to average variable cost at an output of 6 visits is O $3.33 $12.000 51333 O $120 00 166

Answer 1

We have the following information

Workers	Visits per Day	Variable Cost ($)	Fixed Cost ($)	Average Variable Cost ($)
1	10	200	400	20.00
2	26	400	400	15.38
3	46	600	400	13.04
4	60	800	400	13.33
5	72	1000	400	13.89

Average variable cost is variable cost divided by visits per day. So, the average variable cost at an output of 60 visits is equal to $13.33