Figure 8-5

-From Figure 8-5 one can deduce
A)TR = TC at outputs 10 and 60.
B)MR = MC at output 35.
C)TFC = 100.
D)All of the above are correct.

Question

Figure 8-5
 
-From Figure 8-5 one can deduce
A)TR = TC at outputs 10 and 60. 
B)MR = MC at output 35. 
C)TFC = 100. 
D)All of the above are correct.

Quizplus · Accepted Answer

From Figure 8-5, we can see that TR (total revenue) and TC (total cost) intersect at outputs 10 and 60, indicating that TR = TC at these outputs. This implies that choice A is correct. Also, the minimum point of the AVC (average variable cost) curve, which is where MC (marginal cost) intersects AVC, is at output 35, indicating that MR = MC at this output. Hence, choice B is correct. Lastly, we can observe that TFC (total fixed cost) is constant at $100 regardless of the output level. Therefore, choice C is also correct. Hence, the best choice is D, as all options are accurate.

Figure 8-5 -From Figure 8-5 One Can Deduce