Use the following to answer question:
-(Figure: Short-Run Costs II)Use Figure: Short-Run Costs II.Curve 2 is the _____ cost curve.
A)average total
B)average variable
C)marginal
D)total

Question

Use the following to answer question: 
-(Figure: Short-Run Costs II)Use Figure: Short-Run Costs II.Curve 2 is the _____ cost curve.
A)average total 
B)average variable 
C)marginal 
D)total

Quizplus · Accepted Answer

Curve 2 is the average total cost curve, which typically shows a U-shape due to the spreading of fixed costs and variable costs over different levels of output.

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