The Diagram Below Shows Some Short-Run Cost Curves for a Firm

question 87

Multiple Choice

The diagram below shows some short-run cost curves for a firm. FIGURE 7-2
-Refer to Figure 7-2.Which of the following choices correctly identifies the cost curves in part (ii) of the figure?

• A)Curve 4 is the marginal cost curve. Curve 5 is the average fixed cost curve. Curve 6 is the average variable cost curve. Curve 7 is the average total cost curve.
• B)Curve 4 is the average total cost curve. Curve 5 is the marginal cost curve. Curve 6 is the average variable cost curve. Curve 7 is the average fixed cost curve.
• C)Curve 4 is the average fixed cost curve. Curve 5 is the average total cost curve. Curve 6 is the marginal cost curve. Curve 7 is the average variable cost curve.
• D)Curve 4 is the marginal cost curve. Curve 5 is the average total cost curve. Curve 6 is the average variable cost curve. Curve 7 is the average fixed cost curve.
• E)Curve 4 is the marginal cost curve. Curve 5 is the average variable cost curve. Curve 6 is the average fixed cost curve. Curve 7 is the average total cost curve.

---

Definitions:

Implantation

The process in which a fertilized egg attaches itself to the wall of the uterus, marking the beginning of pregnancy.

Zygote

The initial cell formed when a sperm cell fertilizes an egg cell, which then undergoes division and development to form an embryo.

Fallopian Tube

A pair of tubes leading from the ovaries of female mammals into the uterus, important for conveying eggs to the site of fertilization.

Conception

The beginning of the biological development process when a sperm fertilizes an egg, leading to the formation of a zygote.