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

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

Question

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

Quizplus · Accepted Answer

The curve labeled W represents the firm's average total cost curve because it typically has a U-shape due to economies and diseconomies of scale, reflecting the average cost per unit of output when both fixed and variable costs are considered.

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