What is the average variable cost per unit when producing three units if total variable costs are $6?

To find the average variable cost per unit, you need to divide the total variable costs by the number of units produced. In this case, the total variable costs are $6, and the number of units produced is three.

The formula for average variable cost is as follows:

Average Variable Cost = Total Variable Costs / Quantity of Output

So, substituting in the given values:

Average Variable Cost = $6 / 3 = $2

This calculation shows that for each unit produced, the variable cost incurred is $2, which is the reason this choice is correct. Understanding how to calculate average variable costs is essential for analyzing production efficiency and cost management in economics.