The Figure Given Below Shows Cost Curves of a Firm

question 93

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.When Average Variable Cost (AVC) is at a minimum,which of the following is true?

• A)AVC equals AB
• B)Marginal cost (M
• C) equals 0G
• C)Average total cost exceeds AVC by SR
• D)MC equals HN
• E)MC equals GJ

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Definitions:

Gangue

The valueless minerals or rock that are mined along with valuable minerals or ore, typically disposed of as waste.

Profitably Extractable

Refers to natural resources that can be mined or harvested at a profit, considering the current market prices and extraction costs.

Compacted Plant Remains

Organic matter that has been compressed over time into solid formations, often contributing to the formation of coal and other fossil fuels.

Limestone

A sedimentary rock composed mainly of calcium carbonate, commonly used in construction and as a raw material in manufacturing.