Economics 9708 · AS & A Level · 7.5

7.5 — practice question

The diagram illustrates a firm’s short-run total cost curve (TC). (Short-run TC curve with outputs Q1 Q2 Q3 shown on the horizontal axis labelled OQ1 OQ2 OQ3) Which statement is correct?

  • AAverage total cost is minimised at output OQ2.
  • BAverage variable cost is minimised at output OQ1.
  • CAverage variable cost is minimised at output OQ3.
  • DMarginal cost is minimised at output OQ1.

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