Use the following figure to answer the question : Figure 9-4 : shows the marginal cost curve,the average cost curve,the average variable cost curve,and the demand curve for a firm over different levels of output.The market price is $P.
-Refer to Figure 9-4.The firm's average variable cost at the output level OB is _____.
A)BG
B)GT
C)BT
D)BK

Question

Use the following figure to answer the question : Figure 9-4 : shows the marginal cost curve,the average cost curve,the average variable cost curve,and the demand curve for a firm over different levels of output.The market price is $P. 
-Refer to Figure 9-4.The firm's average variable cost at the output level OB is _____.
A)BG 
B)GT 
C)BT 
D)BK

Quizplus · Accepted Answer

At output level OB, the point where the average variable cost curve intersects with the horizontal line drawn from the point B (which represents the market price), is point T. Therefore, the firm's average variable cost at the output level OB is represented by the vertical line segment BT.

Use the Following Figure to Answer the Question : Figure