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

Quizplus · Accepted Answer

Average total cost is the sum of average fixed cost and average variable cost. In the short run, average fixed cost is constant, so average total cost is determined by average variable cost. In Figure: Short-Run Costs, curve B is the average variable cost curve, so it is also the average total cost curve.

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