A family of short- run cost curves shows how
A) the quality of the fixed factor depreciates over time.
B) technology is continuously changing.
C) each curve is associated with a different quantity of the fixed factor.
D) cost remains constant regardless of the factors used in production.
E) cost curves are always upward sloping.

Question

Quizplus · Accepted Answer

Each short-run cost curve is associated with a different quantity of the fixed factor. This means that as the quantity of the fixed factor changes, the shape and position of the cost curves will also change. Other choices are not applicable to the concept of short-run cost curves.

A Family of Short- Run Cost Curves Shows How