Answer the Question on the Basis of the Following Cost

question 45

Multiple Choice

Answer the question on the basis of the following cost data. The marginal cost curve would intersect the average variable cost curve at about

• A)2 units of output.
• B)4 units of output.
• C)6 units of output.
• D)7 units of output.

---

Definitions:

Average Fixed

The fixed costs of production divided by the quantity of output produced, illustrating how those costs are spread over output.

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced.

Total Output

The total quantity of goods or services produced by an individual, firm, industry, or economy.

Dry-Cleaning Business

A service-oriented business that cleans clothes, textiles, and garments using a chemical solvent rather than water.