Question

The graph above shows a typical graph of several per unit cost measures. Refer to the graph to answer the following qu • The curve labeled Dis most likely the • curve. • The curve labeled C is most likely the curve. • The curve labeled B is most likely the curve. • The curve labeled A is most likely the curve. In general, if • curve is above • curve then ATC curve must be decreasing at that quantity Check 074

Answer 1

QUESTION :

SOLUTION :

From above fig. the point shows as

The curve labeled D is most likely the Average Variable cost ( AVC ) curve

The curve labeled C is most likely the Average fixed cost ( AFC ) curve

The curve labeled B is most likely the Marginal Cost ( MC ) curve

The curve labeled A is most likely the Average Total Cost ( ATC ) curve

In general , if AVC curve is above MC curve , then ATC curve must be decreasing at that quantity .