Exhibit 7.3

-Refer to Exhibit 7.3,which shows the U-shaped cost curves for a producer.A is the marginal cost curve (MC),B is the average variable cost curve (AVC),and C is the average total cost curve (ATC).At an output of 10,the _____

Question

Exhibit 7.3
 
-Refer to Exhibit 7.3,which shows the U-shaped cost curves for a producer.A is the marginal cost curve (MC),B is the average variable cost curve (AVC),and C is the average total cost curve (ATC).At an output of 10,the _____

Quizplus · Accepted Answer

At an output of 10, the variable cost equals $10 as it intersects with the AVC curve. The total cost would be higher than $10 as it includes both fixed and variable costs. The marginal cost curve shows the additional cost of producing one more unit of output, it does not indicate the total cost at a specific output level. Fixed cost is not represented by any of the curves in the exhibit.

Exhibit 7.3 -Refer to Exhibit 7.3,which Shows the U-Shaped Cost Curves for U-Shaped