**Figure Explanation:**The graph illustrates four different cost curves labeled A, B, C, and D. The x-axis represents "Quantity (units per day)," ranging from 0 to 80, and the y-axis represents "Cost per unit (dollars per unit)," ranging from 0 to 20.- **Curve A**: Downward sloping, indicating decreasing costs with increased quantity and intersects with curve B at a certain point.- **Curve B**: U-shaped, representing typical cost behavior as quantity increases, intersecting with curves A and C.- **Curve C**: Appears to be upward sloping, increasing as quantity increases, overlapping slightly with curve B.- **Curve D**: Downward sloping, below the other curves, suggesting decreasing costs with increased quantity.The intersection of curves A and B indicates a critical point of cost analysis.**Question:**In the figure, the intersection of curves A and B is the point at which:- A. average total cost is minimized.- B. average variable cost is minimized.- C. average fixed cost is minimized.- D. total product is maximized.This educational question prompts analysis of cost behaviors and optimization of production costs based on the interaction of these curves.

Answered: Image /qna-images/answer/b5874c18-8205-4872-b393-0e231dabb5b4.jpg

In the figure, the intersection of curves A and B is the point at which 20 16 20 40 60 80 Quantily (unts per day) O A. average total cost is minimized. OB. average variable cost is minimized. O C. average fixed cost is minimized. OD. total product is maximized. 8, 12 4. Costs per unit (dollars per unit)

In the figure, the intersection of curves A and B is the point at which 20 16 20 40 60 80 Quantily (unts per day) O A. average total cost is minimized. OB. average variable cost is minimized. O C. average fixed cost is minimized. OD. total product is maximized. 8, 12 4. Costs per unit (dollars per unit)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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