-Refer to the Above Figure

question 385

Multiple Choice

-Refer to the above figure. Corn is an input for producing Corn Flakes. Which diagram shows the effect on the supply of Corn Flakes when the price of corn has increased?

• A)graph C
• B)graph D
• C)neither graph
• D)both graphs

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Definitions:

Output

The amount of goods or services produced by a person, machine, factory, country, etc.

Marginal Cost Curve

A graph that displays the cost of producing each additional unit, typically showing how marginal cost changes as production increases.

Average Total Cost (ATC)

The total cost of production divided by the quantity of output produced, representing the per unit cost of production.

Average Variable Cost (AVC)

The total variable costs of production (like labor and material costs) divided by the quantity of output produced, indicating the average variable expense per unit of output.