The Figure Given Below Shows Cost Curves of a Firm

question 16

Multiple Choice

The figure given below shows cost curves of a firm. Figure: 7.2 In the figure,
|: Marginal cost curve
||: Average total cost curve
|||: Average variable cost curve
Refer to Figure 7.2.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:

Depth Perception

The ability to perceive the world in three dimensions and to judge the distance of objects.

Binocular Cue

A visual information cue that requires both eyes to provide depth perception or distance information.

Disparity

A great difference or inequality between things or people.

Texture Gradients

The visual cue based on changes in pattern that provide information on an object's depth and distance.