Figure 12-3
-Refer to Figure 12-3.The graph illustrates a typical
A) total-cost curve.
B) production function.
C) production possibilities frontier.
D) fixed-cost curve.

Question

Figure 12-3 
-Refer to Figure 12-3.The graph illustrates a typical
A) total-cost curve. 
B) production function. 
C) production possibilities frontier. 
D) fixed-cost curve.

Quizplus · Accepted Answer

The graph shows the relationship between total cost and quantity of output, indicating the typical shape of a total-cost curve. The curve starts low and gradually increases at a decreasing rate before eventually increasing at an increasing rate, which is a typical pattern for total-cost curves. Therefore, choice A, total-cost curve, is the most appropriate answer. The other options, such as production function and production possibilities frontier, are not supported by the graph. The fixed-cost curve is not presented in the graph, either.

Figure 12-3 -Refer to Figure 12-3.The Graph Illustrates a Typical