The Following Graph Shows Average Fixed Costs, Average Variable Costs

question 71

Multiple Choice

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

• A) I
• B) II
• C) III
• D) IV

---

Definitions:

Accounts Payable

The amounts a company owes to creditors for items or services purchased on credit which are due within a year or within a company's operating cycle.

Equipment

Tangible assets used in operations, such as machinery and computers, which are not intended for sale.

Owner's Equity

Owner's equity is the residual interest in the assets of the entity after deducting liabilities, representing the owner's claim on the business assets.

Income Statement

A report detailing a company's income and expenditures within a certain time frame, leading to a profit or deficit.