Use the following two statements to answer this question: I. The average total c

Question

Use the following two statements to answer this question: I. The average total cost of a given level of output is the slope of the line from the origin to the total cost curve at that level of output. II. The marginal cost of a given level of output is the slope of the line that is tangent to the variable cost curve at that level of output. A) Both I and II are true. B) I is true, and II is false. C) I is false, and II is true. D) Both I and II are false. (Please provide the reason why you pick that option not others)

Explanation / Answer

Both are true .

Thus ans is A

Average cost is the cost per unit or total cost divided by the total quantity.

And marginal cost is the additional cost incurred due to additional unit produced.

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