Figure 4.2 Short-Run Cost Curves

-Refer to Figure 4.2. Curve 3 represents
A) total cost
B) marginal cost
C) average variable cost
D) average total cost

Question

Figure 4.2 Short-Run Cost Curves
 
-Refer to Figure 4.2. Curve 3 represents
A) total cost 
B) marginal cost 
C) average variable cost 
D) average total cost

Quizplus · Accepted Answer

Curve 3 typically represents average variable cost (AVC) in economic diagrams, as it usually starts high, decreases as production increases due to economies of scale, and then increases again due to diseconomies of scale.