Refer to the information provided in Figure 8.6 below to answer the questions that follow. Figure 8.6
-Refer to Figure 8.6. Outdoor Equipment's average variable costs are minimized at the output level
A) where Curves 1 and 2 intersect.
B) where Curves 1 and 3 intersect.
C) between the intersections of Curves 1 and 2 and Curves 1 and 3.
D) indeterminate with the given information.

Question

Refer to the information provided in Figure 8.6 below to answer the questions that follow.  Figure 8.6
-Refer to Figure 8.6. Outdoor Equipment's average variable costs are minimized at the output level
A) where Curves 1 and 2 intersect. 
B) where Curves 1 and 3 intersect. 
C) between the intersections of Curves 1 and 2 and Curves 1 and 3. 
D) indeterminate with the given information.

Quizplus · Accepted Answer

The average variable cost is minimized at the output level where the marginal cost curve (Curve 1) intersects the average variable cost curve (Curve 2).

Refer to the Information Provided in Figure 8