Cost (dollars) 150 100 50 0 5 10 D $15 20 B Output (teapots per day) 5. Refer to Figure above. Which one of the following statements are [TRUE/FALSE]? 0 A. The vertical gap between curves B and C is equal to average variable cost. [TRUE/FALSE] 0 B. Average fixed cost decreases with output. [TRUE/FALSE] 0 C. Line B comes closer to line C as output increases because of a decrease in average fixed cost. [TRUE/FALSE] D. The vertical gap between curves B and C is equal to average fixed cost. [TRUE/FALSE] 0 E. Curve D is the marginal cost curve. [TRUE/FALSE]
Cost (dollars) 150 100 50 0 5 10 D $15 20 B Output (teapots per day) 5. Refer to Figure above. Which one of the following statements are [TRUE/FALSE]? 0 A. The vertical gap between curves B and C is equal to average variable cost. [TRUE/FALSE] 0 B. Average fixed cost decreases with output. [TRUE/FALSE] 0 C. Line B comes closer to line C as output increases because of a decrease in average fixed cost. [TRUE/FALSE] D. The vertical gap between curves B and C is equal to average fixed cost. [TRUE/FALSE] 0 E. Curve D is the marginal cost curve. [TRUE/FALSE]
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 8SQP
Related questions
Question
![Cost (dollars)
150
100
50
0
5
10
D
$15
20
B
Output (teapots per day)
5. Refer to Figure above. Which one of the following statements are [TRUE/FALSE]?
0
A. The vertical gap between curves B and C is equal to average variable cost. [TRUE/FALSE]
0
B. Average fixed cost decreases with output. [TRUE/FALSE]
0
C. Line B comes closer to line C as output increases because of a decrease in average fixed cost. [TRUE/FALSE]
D. The vertical gap between curves B and C is equal to average fixed cost. [TRUE/FALSE]
0
E. Curve D is the marginal cost curve. [TRUE/FALSE]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F06585917-fd8d-4827-9d4e-b18720732072%2Fc27e7422-b0c8-4507-bed3-d1beb6166867%2F2bu7hqc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Cost (dollars)
150
100
50
0
5
10
D
$15
20
B
Output (teapots per day)
5. Refer to Figure above. Which one of the following statements are [TRUE/FALSE]?
0
A. The vertical gap between curves B and C is equal to average variable cost. [TRUE/FALSE]
0
B. Average fixed cost decreases with output. [TRUE/FALSE]
0
C. Line B comes closer to line C as output increases because of a decrease in average fixed cost. [TRUE/FALSE]
D. The vertical gap between curves B and C is equal to average fixed cost. [TRUE/FALSE]
0
E. Curve D is the marginal cost curve. [TRUE/FALSE]
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