Use the following figure to answer the question : figure 8-1: shows the curves F,C,and G denote the total cost,the total variable cost,and the total fixed cost of a firm.

-In Figure 8-1,R identifies the point:
A)of inflection.
B)where AVC reaches a minimum.
C)where MC reaches a minimum.
D)where diminishing marginal returns set in.

Question

Use the following figure to answer the question : figure 8-1: shows the curves F,C,and G denote the total cost,the total variable cost,and the total fixed cost of a firm.

-In Figure 8-1,R identifies the point:
A)of inflection. 
B)where AVC reaches a minimum. 
C)where MC reaches a minimum. 
D)where diminishing marginal returns set in.

Quizplus · Accepted Answer

Point R in Figure 8-1, typically found on a graph related to economics and cost analysis, identifies the point where Average Variable Cost (AVC) reaches its minimum. This is a common characteristic in graphs depicting cost curves, where the AVC curve typically has a U-shape, indicating that there is a point at which the cost to produce an additional unit is at its lowest before it starts to increase again due to inefficiencies or increased input costs.

Use the Following Figure to Answer the Question : Figure