At 30 units of output, a firm's marginal cost and average variable cost each equal $10.Therefore, assuming normally shaped cost curves, at 29 units of output its marginal cost:
A) is greater than $10 and its average variable cost is less than $10.
B) is less than $10 and its average variable cost is more than $10.
C) and its average variable cost are each greater than $10.
D) and its average variable cost are each equal to $10.

Question

Quizplus · Accepted Answer

The Answer of At 30 units of output, a firm's marginal cost and average variable cost each equal $10.Therefore, assuming normally shaped cost curves, at 29 units of output its marginal cost:
A) is greater than $10 and its average variable cost is less than $10.
B) is less than $10 and its average variable cost is more than $10.
C) and its average variable cost are each greater than $10.
D) and its average variable cost are each equal to $10.

At 30 Units of Output, a Firm's Marginal Cost and Average