Figure 13-2
-Refer to Figure 13-2. Curve A intersects curve B
A)where the firm maximizes production.
B)at the minimum of average fixed cost.
C)at the efficient scale.
D)where fixed costs equal variable costs.

Question

Figure 13-2  ​
-Refer to Figure 13-2. Curve A intersects curve B
A)where the firm maximizes production. 
B)at the minimum of average fixed cost. 
C)at the efficient scale. 
D)where fixed costs equal variable costs.

Quizplus · Accepted Answer

Curve A, which typically represents the long-run average cost curve, intersects curve B, the short-run average cost curve, at the efficient scale. This is the point where the firm is producing at its lowest average cost in the long run.

Figure 13-2 ​

Figure 13-2