FIGURE 7-3

-Refer to Figure 7-3. Which is the short-run average total cost curve?

Question

FIGURE 7-3
 
-Refer to Figure 7-3. Which is the short-run average total cost curve?

Quizplus · Accepted Answer

The short-run average total cost curve is the curve that starts from the lowest point on the short-run average variable cost curve (in this case it is point Q) and passes through the minimum point on the short-run average total cost curve (in this case it is point S). Thus, the curve labelled C is the short-run average total cost curve in Figure 7-3.

FIGURE 7-3 -Refer to Figure 7-3. Which Is the Short-Run Average Total