Figure: A Firm's Cost Curves (Figure: A Firm's Cost Curves) Look at the figure A Firm's Cost Curves.The curve labeled W
Represents the firm's curve.
A)average fixed cost
B)average total cost
C)average variable cost
D)total variable cost

Question

Figure: A Firm's Cost Curves   (Figure: A Firm's Cost Curves) Look at the figure A Firm's Cost Curves.The curve labeled W
Represents the firm's curve.
A)average fixed cost 
B)average total cost 
C)average variable cost 
D)total variable cost

Quizplus · Accepted Answer

Curve W represents the firm's average total cost (ATC) because it is the U-shaped curve that hits the lowest point at the minimum of the average variable cost (AVC) curve and slopes upwards at higher levels of output due to the increasing average fixed cost (AFC) as output expands.

Figure: a Firm's Cost Curves (Figure: a Firm's