The figure above shows some of a firm's cost curves.
-Based on the figure above,curve C is the firm's
A) marginal cost curve.
B) total cost curve.
C) average total cost curve.
D) average variable cost curve.
E) average fixed cost curve.

Question

The figure above shows some of a firm's cost curves.
-Based on the figure above,curve C is the firm's
A) marginal cost curve. 
B) total cost curve. 
C) average total cost curve. 
D) average variable cost curve. 
E) average fixed cost curve.

Quizplus · Accepted Answer

Curve C represents the average total cost curve, which is calculated by dividing total cost by the quantity of output. Therefore, it includes both fixed and variable costs.

The Figure Above Shows Some of a Firm's Cost Curves