The Figure Given Below Shows Cost Curves of a Firm

question 89

Multiple Choice

The figure given below shows cost curves of a firm. Figure: 7.2
- In the figure,
|: Marginal cost curve
||: Average total cost curve
|||: Average variable cost curve
Refer to Figure 7.2.At an output level of G:

• A)both average total cost and average variable cost are falling.
• B)average fixed cost is equal to the distance JK.
• C)average variable cost exceeds marginal cost by the amount LJ.
• D)average total cost exceeds marginal cost by the amount KJ.
• E)total cost is equal to the area 0AJG.

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Definitions:

Communism

A political and economic ideology that aims at creating a classless society in which the means of production are owned and controlled by the community as a whole.

Capitalism

An economic system based on private ownership of the means of production and their operation for profit.

Capitalist States

Countries where the trade and industry are controlled by private owners for profit, rather than by the state.

Authoritarian States

Nations governed by a single ruler or a small group of individuals, where individual freedoms and democratic processes are limited.