For most firms, average total costs will decrease initially due to decreasing marginal physical product for the inputs used in the production process

Name: For most firms, average total costs will decrease initially due to decreasing marginal physical product for the inputs used in the production process
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Average total costs initially decrease due to increasing marginal returns (or increasing marginal physical product) for the inputs used in the production process, not decreasing.

For Most Firms, Average Total Costs Will Decrease Initially Due