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. 20 #0033638 10 18 17 10 15 14 11 /MC PAC Avs If the average fixed cost curve is added to the graph, its shape would be always increasing. always decreasing. constant. U shaped.
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. 20 #0033638 10 18 17 10 15 14 11 /MC PAC Avs If the average fixed cost curve is added to the graph, its shape would be always increasing. always decreasing. constant. U shaped.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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