Asked by ashok Gadiparthi on Jul 28, 2024
Verified
Refer to Table 13-14. What is the shape of the average-variable-cost curve?
Average-Variable-Cost Curve
A graphical representation showing how average variable costs of production vary with the level of output, typically U-shaped due to economies and diseconomies of scale.
- Scrutinize and characterize the outline of cost curves, entailing total cost, average total cost, average fixed cost, average variable cost, and marginal cost.
Verified Answer
TP
Taylor PrichardJul 28, 2024
Final Answer :
AVC = VC/Q, where VC is graphed on the vertical axis and Q (not labor) is graphed on the horizontal axis. For the range of output specified in the table, as output increases, AVC increases (0.1, 0.11, 0.13, 0.16, 0.19, 0.23).
Learning Objectives
- Scrutinize and characterize the outline of cost curves, entailing total cost, average total cost, average fixed cost, average variable cost, and marginal cost.