In the Graph Below,which Depicts the Relationship Between Units Produced

question 139

Multiple Choice

In the graph below,which depicts the relationship between units produced and total cost,the dotted line depicts which type of total cost?

• A) Variable cost
• B) Fixed cost
• C) Mixed cost
• D) None of these

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Definitions:

Marginal Cost

The additional cost incurred from making one more unit of a good or service.

Optimal-output

The level of production that maximizes a firm's profit, where marginal cost equals marginal revenue.

Break-even

The point at which cost or expenses and revenue are equal, resulting in neither profit nor loss.

Long-run Equilibrium

A state in which all factors of production and costs are variable, and firms are making neither excess profits nor losses.