Figure: Short-Run Costs Cost curves (dollars) $200 В A 150 100 50 F 1 9 10...

Question

Question

Answer 1

Answer #1

1) Curve A represents the MC curve

option(D)

2) Curve B represents the average total cost curve

option(B)

3) Divide total cost into two -a fixed cost which cannot be changed in the short run and variable cost that can be

option(A)

4) When the price is less than its average cost, the firm will incur losses

option(B)

5) TR = P*Q

= 6*5 = 30

Option(C)

Answer 2

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