Graph 13-5 The set of curves above reflect information about the cost structure of a firm.Use this graph to answer the following question(s).
-Refer to Graph 13-5.Which of the curves is most likely to represent average variable cost?
A)A
B)B
C)C

Question

Graph 13-5  The set of curves above reflect information about the cost structure of a firm.Use this graph to answer the following question(s).
-Refer to Graph 13-5.Which of the curves is most likely to represent average variable cost?
A)A 
B)B 
C)C

Quizplus · Accepted Answer

Curve C is most likely to represent average variable cost because it initially decreases, reaches a minimum point, and then starts to increase. This shape is typical for average variable costs due to economies of scale and the spreading effect at lower levels of output, followed by the effects of diminishing marginal returns at higher levels of output.

Graph 13-5 the Set of Curves Above Reflect Information