The Figure Given Below Shows the Average Fixed Cost (AFC)and

question 24

Multiple Choice

The figure given below shows the average fixed cost (AFC) and the average variable cost (AVC) curves of a competive firm. Figure 21.1 Using Figure 21.1 determine the average total cost of producing the first unit of the output.

• A)$10.
• B)$20.
• C)$30.
• D)$40.
• E)$50.

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Definitions:

Marginal Cost

The cost of producing one additional unit of a good.

Public Good

Goods that are non-excludable and non-rivalrous, meaning they can be used by multiple people simultaneously without diminishing availability to others.

Artificially Scarce Good

Goods that are made scarce by artificial means rather than by natural scarcity or inherent limited supply.

Electronic Book

A book publication in digital form, readable on computers or other electronic devices, designed to emulate the experience of reading a printed book.