Use the Following Figure to Answer the Question : Figure

question 62

Multiple Choice

Use the following figure to answer the question : Figure 9-4 : shows the marginal cost curve,the average cost curve,the average variable cost curve,and the demand curve for a firm over different levels of output.The market price is $P.
-Refer to Figure 9-4.The firm's average variable cost at the output level OB is _____.

• A)BG
• B)GT
• C)BT
• D)BK

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Definitions:

Market Value

The present cost for purchasing or selling a product or service in a market.

Split-Off Point

The Split-Off Point is a stage in a production process where multiple products are generated from common inputs, each taking a different processing path thereafter.

Joint Costs

Costs incurred in the process of producing two or more products simultaneously, where the costs cannot be individually attributed to the products until a certain split-off point.

Market Value

The present cost at which a service or asset is available for purchase or sale.