Which of the following statements about average costs is false?
A) The difference between average total cost and average variable cost does not change as output increases.
B) Average fixed cost decreases as output increases.
C) Average variable cost first decreases and then increases as output increases.
D) Average total cost first decreases and then increases as output increases.
E) The difference between average total cost and average variable cost is average fixed cost.
Correct Answer:
Verified
Q23: Average fixed cost is the difference between
Q24: Fixed cost does not vary with the
Q25: Exhibit 8-3 Q26: The vertical distance between average total cost Q27: Fixed costs do not exist in the Q29: If a firm is experiencing diminishing returns
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