The short-run average total cost curve is generally assumed to be:
A) U-shaped.
B) horizontal.
C) upward-sloping.
D) downward-sloping.

Name: The short-run average total cost curve is generally assumed to be: A) U-shaped. B) horizontal. C) upward-sloping. D) downward-sloping.
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Question

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The short-run average total cost curve is typically U-shaped due to initially decreasing average costs with increased production, followed by increasing average costs as diminishing returns set in.

The Short-Run Average Total Cost Curve Is Generally Assumed to Be