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UI Post-UTME Economics 2012 (Model questions) Question 12

Question 12

Theory of Costs and Revenue

Use the diagram (MC, ATC and AVC curves) to answer this question. The average total cost when 20 units are produced is

Diagram for this question
  1. A.₦23.00
  2. B.₦13.00
  3. C.₦15.00
  4. D.₦20.00
Show the answer and explanation

Answer: C (₦15.00)

Explanation

MC cuts ATC at its lowest point, shown at 20 units and ₦15.