Refer to the information provided in Figure 8.4 below to answer the questions that follow. Figure 8.4
-Refer to Figure 8.4. Marginal costs will equal average variable costs at
A) two microwave ovens.
B) three microwave ovens.
C) six microwave ovens.
D) an indeterminate level of output from this information.

Question

Refer to the information provided in Figure 8.4 below to answer the questions that follow.  Figure 8.4
-Refer to Figure 8.4. Marginal costs will equal average variable costs at
A) two microwave ovens. 
B) three microwave ovens. 
C) six microwave ovens. 
D) an indeterminate level of output from this information.

Quizplus · Accepted Answer

Marginal costs equal average variable costs at the minimum point of the average variable cost curve, which typically occurs at a specific level of output. In this case, it is six microwave ovens.

Refer to the Information Provided in Figure 8