Each graph illustrates three short-run cost curves for firms, where ATC is average total cost (also...

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Each graph illustrates three short-run cost curves for firms, where ATC is average total cost (also referred to as average co Answer Bank Graph A Graph F Graph E MC MC MC AVC AVC Cost Cost ATC ATC ATC AVC Output Output Output Graph C Graph D Graph B M

business economics

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Answer 1

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Answer #1

NOTE:

1. ATC curve lies above AVC and they never intersect

2. MC intersects both AVC and ATC at their minimum points, and so,

3. Minimum point of ATC lies to the right of that of AVC.

So:

Valid: Graphs D, F

Invalid: Graphs A, B, C, E

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Answer 2

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