Refer to Figure 8-1. Which of the following is true at the output level BT?CostsDBFigure 8-1STCGOutputA. The firm's fixed cost is RT.B. The firm's average variable cost is RT/BT.C. The firm's marginal cost is RT/RB.D. The firm's variable cost is AB

Total cost is the sum of variable cost and fixed cost. Fixed cost remains the same at each level of…

Answered: A. The firm's fixed cost is RT. B. The…

A. The firm's fixed cost is RT. B. The firm's average variable cost is RT/BT. C. The firm's marginal cost is RT/RB. D. The firm's variable cost is AB

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

100%

Refer to Figure 8-1. Which of the following is true at the output level BT?
Costs
D
B
Figure 8-1
S
T
C
G
Output
A. The firm's fixed cost is RT.
B. The firm's average variable cost is RT/BT.
C. The firm's marginal cost is RT/RB.
D. The firm's variable cost is AB

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