Portia owns and manages a sporting apparel company. Consider the given average cost (AC), ayerage variable cost (AVC), = marginal cost (MC) curves for track suits. All but the MC curve have been placed incorrectly. Portia knows that the minimu: 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 are consistent with the marginal cost curve. If the average fixed cost curve is added to the graph, its 20 shape would be 19 O always increasing. PAVC 18 IMC 17 16 constant. 15 always decreasing. O u haped. 14 13 12 * 11 10 AC 4. 2. 10 Qauntity (s) au

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Chapter1: Making Economics Decisions
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Portia owns and manages a sporting apparel company. Consider the given average cost (AC), ayerage 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
20
shape would be
19
AVC
always increasing.
18
/MC
17
16
constant.
15
ways decreasing.
14
13
U shaped.
12
11
10
7.
P AC
2.
2.
10
Qauntity
Incorrect
Price (S)
Transcribed Image Text:Portia owns and manages a sporting apparel company. Consider the given average cost (AC), ayerage 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 20 shape would be 19 AVC always increasing. 18 /MC 17 16 constant. 15 ways decreasing. 14 13 U shaped. 12 11 10 7. P AC 2. 2. 10 Qauntity Incorrect Price (S)
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