Refer to Figure 8.6. Outdoor Equipmentʹs ________ are minimized at the output level where curves 1 and 3 intersect.

A) average variable costs
B) average total costs
C) average fixed costs
D) marginal costs

Question

Jennifer Andrade · Accepted Answer

Final Answer : B, Explanation :  At the output level where the marginal cost curve (curve 1) intersects the average total cost curve (curve 3), average total costs are minimized. This is a fundamental principle of microeconomics, indicating the most efficient scale of production for minimizing costs.

Refer to Figure 8.6. Outdoor Equipmentʹs ________ are minimized at the output level where curves 1 and 3 intersect.

A) average variable costs
B) average total costs
C) average fixed costs
D) marginal costs

Definitions

Learning Objectives

Learning Objectives

Related questions

Refer to Figure 8.6. Outdoor Equipmentʹs ________ are minimized at the output level where curves 1 and 3 intersect.A) average variable costsB) average total costsC) average fixed costsD) marginal costs

Definitions

Learning Objectives

Learning Objectives

Related questions

Refer to Figure 8.6. Outdoor Equipmentʹs ________ are minimized at the output level where curves 1 and 3 intersect.

A) average variable costs
B) average total costs
C) average fixed costs
D) marginal costs