When production increases, the average variable cost and average total cost curves:
A) spread farther apart.
B) become horizontal.
C) cross.
D) move closer together.

Name: When production increases, the average variable cost and average total cost curves: A) spread farther apart. B) become horizontal. C) cross. D) move closer together.
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Question

Quizplus · Accepted Answer

As production increases, the average fixed cost decreases, causing the average total cost curve to move closer to the average variable cost curve.

When Production Increases, the Average Variable Cost and Average Total