Use the following to answer question(s): A Firm's Cost Curves

-(Exhibit: A Firm's Cost Curves) The curve labeled V represents the firm's _______ curve.
A) total cost
B) average total cost
C) marginal cost
D) average variable cost

Question

Use the following to answer question(s): A Firm's Cost Curves
 
-(Exhibit: A Firm's Cost Curves) The curve labeled V represents the firm's _______ curve.
A) total cost 
B) average total cost 
C) marginal cost 
D) average variable cost

Quizplus · Accepted Answer

The curve labeled V is upward sloping and intersects with the ATC and AVC curves at their respective minimum points. This suggests that it represents the firm's marginal cost curve, which shows how total cost changes as a result of producing one additional unit of output.

Use the Following to Answer Question(s): a Firm's Cost Curves