Figure 1
b.
Figure 2
c.
Figure 3
d.
Figure 4
ANSWER:
d
DIFFICULTY:
Moderate
LEARNING OBJECTIVES:
ECON.MANK.174 - Given a graph of the production function and input costs, derive the firm's total-cost curve.
TOPICS:
Producer theory
Production function
KEYWORDS:
BLOOM'S: Comprehension
CUSTOM ID:
178.13.3 - MC - MANK08
Figure 13-8
-Refer to Figure 13-8. Quantity B represents the output level where the firm
A)maximizes profits.
B)minimizes average variable costs.
C)produces at the efficient scale.
D)minimizes marginal costs.

Question

Figure 1
b.
Figure 2
c.
Figure 3
d.
Figure 4
ANSWER:
d
DIFFICULTY:
Moderate
LEARNING OBJECTIVES:
ECON.MANK.174 - Given a graph of the production function and input costs, derive the firm's total-cost curve.
TOPICS:
Producer theory
Production function
KEYWORDS:
BLOOM'S: Comprehension
CUSTOM ID:
178.13.3 - MC - MANK08
Figure 13-8 
-Refer to Figure 13-8. Quantity B represents the output level where the firm
A)maximizes profits. 
B)minimizes average variable costs. 
C)produces at the efficient scale. 
D)minimizes marginal costs.

Quizplus · Accepted Answer

Quantity B represents the output level where the firm minimizes average variable costs, as this is where the AVC curve intersects the total cost curve. This is not necessarily the level where the firm maximizes profits, produces at the efficient scale, or minimizes marginal costs.

Figure 1 BFigure 2