Figure 6.6 Figure 6.6 contains information about the short-run cost structure of a firm.
-Refer to Figure 6.6.In the figure above,which letter represents the average variable cost curve?

Question

Figure 6.6  Figure 6.6 contains information about the short-run cost structure of a firm.
-Refer to Figure 6.6.In the figure above,which letter represents the average variable cost curve?

Quizplus · Accepted Answer

The average variable cost (AVC) curve is typically U-shaped and lies below the average total cost (ATC) curve. In most diagrams, it is labeled as a curve that initially decreases, reaches a minimum point, and then increases as output increases.

Figure 66 Figure 6