Use the following figure to answer the question : figure 8-1: shows the curves F,C,and G denote the total cost,the total variable cost,and the total fixed cost of a firm.

-Which of the following is true at the output level BT?
A)The firm's fixed cost is RT.
B)The firm's average variable cost is RT/BT.
C)The firm's marginal cost is RT/RB.
D)The firm's variable cost is AB

Question

Use the following figure to answer the question : figure 8-1: shows the curves F,C,and G denote the total cost,the total variable cost,and the total fixed cost of a firm.

-Which of the following is true at the output level BT? 
A)The firm's fixed cost is RT. 
B)The firm's average variable cost is RT/BT. 
C)The firm's marginal cost is RT/RB. 
D)The firm's variable cost is AB

Quizplus · Accepted Answer

At output level BT, the average variable cost can be found by drawing a horizontal line from point B to the vertical axis and reading off the value, which is RT/BT. This is the only true statement based on the given information.

Use the Following Figure to Answer the Question : Figure