Figure 5.1
-Refer to Figure 5.1, which shows a family of average cost curves. The average total cost curve is represented by:
A)Curve 1.
B)Curve 2.
C)Curve 3.
D)The vertical sum of curve 1 and curve 2.

Question

Figure 5.1
-Refer to Figure 5.1, which shows a family of average cost curves. The average total cost curve is represented by:
A)Curve 1. 
B)Curve 2. 
C)Curve 3. 
D)The vertical sum of curve 1 and curve 2.

Quizplus · Accepted Answer

The average total cost curve is represented by Curve 1 because it shows the average cost of producing a given quantity of output.

Figure 5.1 -Refer to Figure 5.1, Which Shows a Family of Average