Use the following two statements to answer this question: I. The average total cost of a given level of output is the slope of the line from the origin to the total cost curve at that level of output.
II The marginal cost of a given level of output is the slope of the line that is tangent to the total cost curve at that level of output.
A) Both I and II are true.
B) I is true, and II is false.
C) I is false, and II is true.
D) Both I and II are false.

Question

Quizplus · Accepted Answer

Statement I defines the concept of average total cost, while statement II defines the concept of marginal cost. Both statements accurately describe the relationship between cost and output, and their respective definitions are correct. Therefore, both statements are true.

Use the Following Two Statements to Answer This Question: I