Question

for the firm whose production function and costs are specified in the table, its average-total-cost curve is

Answer 1

The average-variable-cost curve for the company, whose production function and costs are listed in the table, is rising.

AVC: What makes the curve?

There is just one curve that represents all the combinations that may be made utilizing the labor, capital, natural resources, and technological resources at hand. Rising opportunity costs are shown by an externally bowed line, while constant opportunity costs are represented by a straight line.

Divide the variable cost by the quantity produced to arrive at the average variable cost (AVC). Below the average total cost curve is the typical upward-sloping or U-shaped average variable cost curve.

What causes the price of AVC to change?

The variable cost per unit of production is thus referred to as AVC. The AVC frequently falls from zero to normal capacity output as output increases. The AVC shoots quickly over the normal capacity due to the operation of decreasing returns.

Learn more about average-variable-cost curve: https://brainly.com/question/15685285

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