Figure 13-6
The curves below reflect information about the cost structure of a firm.

-Refer to Figure 13-6.Which of the curves is most likely to represent average variable cost?

Question

Figure 13-6
The curves below reflect information about the cost structure of a firm.
 
-Refer to Figure 13-6.Which of the curves is most likely to represent average variable cost?

Quizplus · Accepted Answer

The average variable cost (AVC) curve is typically U-shaped, starting high, decreasing as output increases, and then rising again due to diminishing returns. Curve C is most likely to represent AVC as it follows this pattern.

Figure 13-6 the Curves Below Reflect Information About the Cost Structure of Structure