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# Refer to Figure 8.1, which shows a family of average cost curves.

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Posts: 199
4 weeks ago

Refer to Figure 8.1, which shows a family of average cost curves. The average total cost curve is represented by:

▸ Curve 1.

▸ Curve 2.

▸ Curve 3.

▸ the vertical sum of curve 1 and curve 2.
Textbook
 Survey of Economics: Principles, Applications and Tools Edition: 6th Authors: O'Sullivan, Sheffrin, Perez
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Posts: 242
4 weeks ago
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4 weeks ago
 Refer to Figure 8.1, which shows a family of average cost curves. The average total cost at a given level of output is represented by:▸ the vertical sum of Curve 2 and Curve 3 at a given level of output.▸ the vertical distance between Curve 2 and Curve 3 at a given level of output.▸ the vertical distance between Curve 1 and Curve 2 at a given level of output.▸ the vertical sum of Curve 1 and Curve 2 at a given level of output.
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4 weeks ago
 the vertical sum of Curve 2 and Curve 3 at a given level of output.
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4 weeks ago
 Thank you
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4 weeks ago
 Welcome ツ
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4 weeks ago
 Refer to Figure 8.1, which shows a family of average cost curves. Why does the vertical distance between Curve 1 and Curve 2 decrease as output increases from Q1 to Q2?▸ Because average variable cost first decreases, then increases as output increases from Q1 to Q2.▸ Because average fixed cost decreases as output increases from Q1 to Q2.▸ Because average total cost first decreases, then increases as output increases from Q1 to Q2.▸ Because average variable cost increases faster than average fixed cost as output level approaches Q2.
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4 weeks ago
 Because average fixed cost decreases as output increases from Q1 to Q2.
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