This graph shows the cost functions of Moe's mushroom gathering business,which is perfectly competitive.
In the graph above,Average Variable Cost is labeled _____,Average Total Cost is labeled _____,and Marginal Cost is labeled ______.

Question

This graph shows the cost functions of Moe's mushroom gathering business,which is perfectly competitive. 
In the graph above,Average Variable Cost is labeled _____,Average Total Cost is labeled _____,and Marginal Cost is labeled ______.

Quizplus · Accepted Answer

The marginal cost curve must intersect both the average variable cost and average total cost at their respective minimum points.Average total cost is the sum of all payments made to the firms fixed and variable factors of production (total cost)divided by total output.

This Graph Shows the Cost Functions of Moe's Mushroom Gathering