Refer to the information provided in Figure 8.6 below to answer the question(s) that follow. Figure 8.6
-Refer to Figure 8.6. Outdoor Equipment's average variable costs are minimized at the output level
A) where curves 1 and 2 intersect.
B) where curves 1 and 3 intersect.
C) between the intersections of curves 1 and 2 and curves 1 and 3.
D) indeterminate with the given information.

Question

Refer to the information provided in Figure 8.6 below to answer the question(s) that follow.  Figure 8.6
-Refer to Figure 8.6. Outdoor Equipment's average variable costs are minimized at the output level
A) where curves 1 and 2 intersect. 
B) where curves 1 and 3 intersect. 
C) between the intersections of curves 1 and 2 and curves 1 and 3. 
D) indeterminate with the given information.

Quizplus · Accepted Answer

Average variable cost is minimized at the output level where the AVC curve intersects the MC curve.

Refer to the Information Provided in Figure 8