The Diagram Below Shows Some Short- Run Cost Curves for a Firm

Multiple Choice

The diagram below shows some short- run cost curves for a firm.
FIGURE 7- 2
-Refer to Figure 7- 2.Which of the following choices correctly identifies the cost curves in part (i) of the figure?

A) Curve 1 is the total variable cost curve.Curve 2 is the total cost curve. Curve 3 is the total fixed cost curve.
B) Curve 1 is the total fixed cost curve.Curve 2 is the total variable cost curve.Curve 3 is the total cost curve.
C) Curve 1 is the total cost curve. Curve 2 is the total variable cost curve.Curve 3 is the average fixed cost curve.
D) Curve 1 is the total cost curve. Curve 2 is the total variable cost curve.Curve 3 is the total fixed cost curve.
E) Curve 1 is the total marginal cost curve.Curve 2 is the total average cost curve.Curve 3 is the total average fixed cost curve.