In the short run,the average total cost curve slopes upward because of:
A)economies of scale.
B)diseconomies of scale.
C)increasing returns.
D)diminishing returns.

Question

Quizplus · Accepted Answer

In the short run, the average total cost curve slopes upward primarily due to diminishing returns. As more units of a variable input (like labor) are added to a fixed amount of other inputs (like capital), the additional output produced by each additional unit of the variable input eventually decreases. This leads to an increase in the average total cost of production.

In the Short Run,the Average Total Cost Curve Slopes Upward