The Figure Given Below Shows Cost Curves of a Firm

question 63

Multiple Choice

The figure given below shows cost curves of a firm.Figure: 8.2
In the figure,
|: Marginal cost curve
||: Average total cost curve
|||: Average variable cost curve
-Refer to Figure 8.2. At an output level of G:

• A)both average total cost and average variable cost are falling.
• B)average fixed cost is equal to the distance JK.
• C)average variable cost exceeds marginal cost by the amount LJ.
• D)average total cost exceeds marginal cost by the amount KJ.
• E)total cost is equal to the area 0AJG.

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Definitions:

Carbon Atoms

The basic building blocks of all organic compounds, consisting of six protons and six neutrons.

Structure

The arrangement of atoms within a molecule which defines the molecule's properties and reactions.

Water Soluble

The ability of a substance to dissolve in water, forming a homogenous mixture.

Compound

A material composed of multiple elements chemically combined in a specific proportion.