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20 To economists the B $500 C $50 D $50 27 Output 0 In the above diagram curves

ID: 1123830 • Letter: 2

Question

20 To economists the B $500 C $50 D $50 27 Output 0 In the above diagram curves 1,2, and 3 represent A. average variable cost, marginal cost, and average fixed cost respectively B. total variable cost, total fixed cost, and total cost respectively Ctotal fixed cost, total variable cost, and total cost respectrely D. marginal product, average variable cost, and average total cost respecively 28. A firm's total variable cost will depend on A. the prices of variable resouroes B. the production techniques that are used. C. the level of output D. all of these Answer the next question(s) on the basis of the accompanying table that shows average total costs (ATC for a manufacturing firm whose total fixed costs are $10 Output ATC $40 27 29 31 38

Explanation / Answer

27.

In the diagram, the three curve shows that curve 1, total fixed cost, curve 2, total variable cost and curve 3 shows total cost.

hence option C is the correct answer.

28.

The firm total variable cost depends only on the prices of the variable resources.

Hence option A is the correct answer.