Figure 7-10



In Figure 7-10, the curve B is



a.

average fixed cost.



b.

average total cost.



c.

average variable cost.



d.

marginal cost.

c

Economics

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The long-run aggregate supply curve is:

A. a horizontal line. B. an upward-sloping line. C. a vertical line. D. a downward-sloping line.

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Why must long-run equilibrium in monopolistic competition occur at the point at which the demand curve is tangent to the average total cost curve?

What will be an ideal response?

Economics