Exhibit 7.3 -Refer to Exhibit 7.3,which Shows the U-Shaped Cost Curves for U-Shaped

question 39

Multiple Choice

Exhibit 7.3

-Refer to Exhibit 7.3,which shows the U-shaped cost curves for a producer.A is the marginal cost curve (MC) ,B is the average variable cost curve (AVC) ,and C is the average total cost curve (ATC) .At an output of 10,the _____

• A)total cost equals $10.
• B)fixed cost equals $1.
• C)variable cost equals $10.
• D)marginal cost equals $10.
• E)fixed cost equals $10.

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Definitions:

Fruits

The mature ovary of a flowering plant, usually containing seeds. Fruits serve as a means for plants to disseminate seeds.

Loam

Soil with roughly equal amounts of sand, silt, and clay.

Silt

Fine-grained soil or sediment with particles smaller than sand and larger than clay, often carried by water and deposited as sediment.