Exhibit 7.3 -Refer to Exhibit 7.3,which Shows the U-Shaped Cost Curves for U-Shaped

Multiple Choice

Exhibit 7.3

-Refer to Exhibit 7.3,which shows the U-shaped cost curves for a producer.A is the marginal cost curve (MC) ,B is the average variable cost curve (AVC) ,and C is the average total cost curve (ATC) .When output is 10,then _____

A) total cost equals $80.
B) fixed cost equals $10.
C) variable cost equals $70.
D) marginal cost equals $10.
E) fixed cost equals $7.