Refer to the information provided in Figure 8.6 below to answer the question(s) that follow. Figure 8.6
-Refer to Figure 8.6. Curve 2 is Outdoor Equipment's
A) marginal cost curve.
B) average variable cost curve.
C) average total cost curve.
D) average fixed cost curve.

Question

Refer to the information provided in Figure 8.6 below to answer the question(s) that follow.  Figure 8.6
-Refer to Figure 8.6. Curve 2 is Outdoor Equipment's
A) marginal cost curve. 
B) average variable cost curve. 
C) average total cost curve. 
D) average fixed cost curve.

Quizplus · Accepted Answer

Curve 2 represents the average variable cost (AVC) curve. This is because it starts from the origin and initially decreases, reaching a minimum before increasing as output increases, which is characteristic of AVC curves due to economies of scale and the law of diminishing returns.

Refer to the Information Provided in Figure 8