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

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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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