Refer to the information provided in Figure 8.6 below to answer the question(s) that follow. Figure 8.6
-Refer to Figure 8.6. Outdoor Equipmentʹs ________ are minimized at the output level where curves 1 and 3 intersect.
A) average variable costs
B) average total costs
C) average fixed costs
D) marginal costs

Question

Refer to the information provided in Figure 8.6 below to answer the question(s) that follow.  Figure 8.6
-Refer to Figure 8.6. Outdoor Equipmentʹs ________ are minimized at the output level where curves 1 and 3 intersect.
A) average variable costs 
B) average total costs 
C) average fixed costs 
D) marginal costs

Quizplus · Accepted Answer

At the output level where the marginal cost curve (curve 1) intersects the average total cost curve (curve 3), average total costs are minimized. This is a fundamental principle of microeconomics, indicating the most efficient scale of production for minimizing costs.

Refer to the Information Provided in Figure 8