Figure 8-1
-Which graph in Figure 8-1 shows a typical firm's total revenue and total cost curves?
A)(a)
B)(b)
C)(c)
D)(d)

Question

Figure 8-1 
-Which graph in Figure 8-1 shows a typical firm's total revenue and total cost curves?
A)(a) 
B)(b) 
C)(c) 
D)(d)

Quizplus · Accepted Answer

Option C is correct because it shows the total cost curve starting above the origin (indicating fixed costs) and increasing at an increasing rate, and the total revenue curve starting from the origin (indicating no revenue at zero output) and increasing linearly, which is typical for firms selling goods at a constant price.

Figure 8-1 -Which Graph in Figure 8-1 Shows a Typical Firm's Total