The Following Graph Shows Average Fixed Costs, Average Variable Costs

question 22

Multiple Choice

The following graph shows average fixed costs, average variable costs, average total costs, and marginal costs of production. The average total cost curve is represented by which curve?

• A) I
• B) II
• C) III
• D) IV

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Definitions:

Compete

The act of striving against others for the purpose of achieving goals such as winning a market share, receiving recognition, or obtaining a scarce resource.

Tariff

A tax imposed by a government on goods and services imported from other countries, intended to raise revenue or protect domestic industries.

Internationally Traded Goods

Products and services that are bought and sold across national borders, subject to international agreements and regulations.

Comparative Advantage

The capability of an entity to manufacture a product or provide a service at a reduced opportunity cost compared to its competitors.