-In the above figure, curve D slopes downward because
A) average fixed costs decrease as output increases.
B) there are decreasing marginal costs.
C) there are diminishing returns.
D) all costs decrease as output increases.

Question

-In the above figure, curve D slopes downward because
A) average fixed costs decrease as output increases. 
B) there are decreasing marginal costs. 
C) there are diminishing returns. 
D) all costs decrease as output increases.

Quizplus · Accepted Answer

Curve D represents average fixed costs, which decrease as output increases because the total fixed costs are spread over a larger number of units.

-In the Above Figure, Curve D Slopes Downward Because