-Referring to Figure 1

question 15

Multiple Choice

-Referring to Figure 1.9, if a point is attainable it is in

• A)AREA #1 but not on the curve.
• B)AREA #1 or is on the curve.
• C)AREA #2 but not on the curve.
• D)AREA #2 or is on the curve.

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Definitions:

Average Total Cost

The total cost of production divided by the quantity of output produced, representing the per-unit cost of production.

Total Cost

The aggregation of all costs, both fixed and variable, incurred by a business in producing a specific quantity of goods or services.

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced; it decreases as production increases.

Average Variable Cost

The total variable costs divided by the quantity of output produced.