Figure 71 Shows the U-Shaped Cost Curves for a Producer

question 114

Multiple Choice

Figure 7.1 shows the U-shaped cost curves for a producer. In the figure below, A is the marginal cost curve, B is the average variable cost curve, and C is the average total cost curve. The vertical distance between lines B and C at any level of output represents _____.​ ​
Figure 7.1
​

• A)marginal cost
• B)average total cost​
• C)average variable cost
• D)average fixed cost
• E)average marginal cost

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Definitions:

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically including the balance sheet, income statement, and cash flow statement.

Tax Rate

The percentage at which an individual or corporation is taxed by the government on income or profits.

ROA

Return on Assets, a financial ratio that indicates how efficiently a company is using its assets to generate profit.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity.