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.

---

Definitions:

Specific Evidence

Concrete, detailed, and relevant data or information that supports a claim, argument, or investigation.

General Conclusion

A final statement or judgment that summarizes the main points discussed, often found at the end of a text or presentation.

Positive Response

An affirmative reaction or reply to an inquiry, situation, or stimulus.

Persuasive Request

A communication technique aimed at convincing someone to grant a request or agree to a proposal through reasoned argument.