On the Crossover Chart Where the Costs of Two or More

question 205

Multiple Choice

On the crossover chart where the costs of two or more location alternatives have been plotted, the quantity at which two cost curves cross is the quantity where:

• A) fixed costs are equal for two alternative locations.
• B) variable costs are equal for two alternative locations.
• C) total costs are equal for all alternative locations.
• D) fixed costs equal variable costs for one location.
• E) total costs are equal for two alternative locations.

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