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 (ii) of the figure?

A) Curve 4 is the average total cost curve. Curve 5 is the marginal cost curve. Curve 6 is the average variable cost curve. Curve 7 is the average fixed cost curve.
B) Curve 4 is the marginal cost curve. Curve 5 is the average total cost curve. Curve 6 is the average variable cost curve. Curve 7 is the average fixed cost curve.
C) Curve 4 is the marginal cost curve. Curve 5 is the average variable cost curve. Curve 6 is the average fixed cost curve.
Curve 7 is the average total cost curve.
D) Curve 4 is the marginal cost curve. Curve 5 is the average fixed cost curve. Curve 6 is the average variable cost curve. Curve 7 is the average total cost curve.
E) Curve 4 is the average fixed cost curve. Curve 5 is the average total cost curve. Curve 6 is the marginal cost curve. Curve 7 is the average variable cost curve.