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

Question

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

Quizplus · Accepted Answer

The average variable cost (AVC) curve typically lies below the average total cost (ATC) curve and above the average fixed cost (AFC) curve. Curve 2 is likely the AVC curve as it fits this description.

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