The Minimum Points of the Average Variable Cost and Average

question 20

Multiple Choice

The minimum points of the average variable cost and average total cost curves occur where

• A)the marginal cost curve lies below the average variable cost and average total cost curves
• B)the marginal cost curve intersects those curves
• C)wages are the lowest
• D)the slope of total cost is the smallest
• E)the elasticity of demand is unitary

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Definitions:

Degrees Of Freedom

The number of independent values or quantities that can be assigned to a statistical distribution, often relevant in the calculation of statistics like variance.

Standard Deviation

A quantification of how much spread or variability exists within a group of figures.

Simple Linear Regression

Simple linear regression is a method for predicting a quantitative outcome using a single explanatory variable, based on the linear relationship between them.

Least Squares

A method in statistics for approximating the solution of overdetermined systems, by minimizing the differences between the observed and predicted values.