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 $5. Rearrange the AC and AVC curves so that th are consistent with the marginal cost curve. If the average fixed cost curve is added to the graph, its shape would be 20 19 ► AVC ĮMC constant. 18 17 always decreasing. 16 15 always increasing. 14 13 U shaped. 12 11 10 8 AC 6 4 3 1 1 3 4 5 6 7 8 9 10 Qauntity Price ($)

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