O Attempt 4 Portia owns and manages a sporting apparel company. Consider the given average cost (AC), average variable cost (AVC), and marginal cost (MC) curves for track suits. All but the MC curve have been placed incorrectly. Portia knows that the minimum average cost for a track suit is $7 and the minimum of average variable cost is $5. Rearrange the AC and AVC curves so that they are consistent with the marginal cost curve. If the average fixed cost curve is added to the graph, its shape would be 20 19 AVC |MC O constant. 18 17 O always decreasing. 16 15 O U shaped. 14 13 12 * 11 O always increasing. 10 Incorrect AC 6 3 2 1 3 7 5 6 Qauntity 4 9 10 Incorrect Price (S)
O Attempt 4 Portia owns and manages a sporting apparel company. Consider the given average cost (AC), average variable cost (AVC), and marginal cost (MC) curves for track suits. All but the MC curve have been placed incorrectly. Portia knows that the minimum average cost for a track suit is $7 and the minimum of average variable cost is $5. Rearrange the AC and AVC curves so that they are consistent with the marginal cost curve. If the average fixed cost curve is added to the graph, its shape would be 20 19 AVC |MC O constant. 18 17 O always decreasing. 16 15 O U shaped. 14 13 12 * 11 O always increasing. 10 Incorrect AC 6 3 2 1 3 7 5 6 Qauntity 4 9 10 Incorrect Price (S)
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 33CTQ: Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then...
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Ø Attempt 4
Portia owns and manages a sporting apparel company. Consider the given average cost (AC), average variable cost (AVC),
and marginal cost (MC) curves for track suits. All but the MC curve have been placed incorrectly. Portia knows that the
minimum average cost for a track suit is $7 and the minimum of average variable cost is $5. Rearrange the AC and AVC
curves so that they are consistent with the marginal cost curve.
If the average fixed cost curve is added to the graph, its
shape would be
20
19
AVC
constant.
18
|MC
17
always decreasing.
16
15
14
U shaped.
13
12
always increasing.
A 11
Incorrect
, AC
1
3
6
7 8
9
10
Qauntity
Incorrect
Price ($)
O O O O
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