The Diagram Below Shows Some Short- Run Cost Curves for a Firm

question 77

Multiple Choice

The diagram below shows some short- run cost curves for a firm. FIGURE 7- 2
-Refer to Figure 7- 2. Which of the following choices correctly identifies the cost curves in part (ii) of the figure?

• A) Curve 4 is the average total cost curve. Curve 5 is the marginal cost curve. Curve 6 is the average variable cost curve. Curve 7 is the average fixed cost curve.
• B) Curve 4 is the marginal cost curve. Curve 5 is the average total cost curve. Curve 6 is the average variable cost curve. Curve 7 is the average fixed cost curve.
• C) Curve 4 is the marginal cost curve. Curve 5 is the average variable cost curve. Curve 6 is the average fixed cost curve. Curve 7 is the average total cost curve.
• D) Curve 4 is the marginal cost curve. Curve 5 is the average fixed cost curve. Curve 6 is the average variable cost curve. Curve 7 is the average total cost curve.
• E) Curve 4 is the average fixed cost curve. Curve 5 is the average total cost curve. Curve 6 is the marginal cost curve. Curve 7 is the average variable cost curve.

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