Figure 8.6.1
-Refer to Figure 8.6.1 above. The minimum variable cost of the firms in this competitive market is:
A) the same for all the firms in the market.
B) lower for firms 1 and 2.
C) lower for firm 3.
D) an unknown level, based on the figure.

Question

Figure 8.6.1
-Refer to Figure 8.6.1 above. The minimum variable cost of the firms in this competitive market is:
A) the same for all the firms in the market. 
B) lower for firms 1 and 2. 
C) lower for firm 3. 
D) an unknown level, based on the figure.

Quizplus · Accepted Answer

Firm 3 has a lower variable cost compared to the other firms in the market, as represented by the lower position of its cost curve. Therefore, C is the best choice.

Figure 8.6.1 -Refer to Figure 8.6.1 Above. the Minimum Variable Cost of Cost