The short-run average total cost curve is -shaped because at low output levels the spreading effect of falling average fixed costs dominates the diminishing returns effect, while at high output levels the reverse is true.

Question

The short-run average total cost curve is  -shaped because at low output levels the spreading effect of falling average fixed costs dominates the diminishing returns effect, while at high output levels the reverse is true.

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The Answer of The short-run average total cost curve is  -shaped because at low output levels the spreading effect of falling average fixed costs dominates the diminishing returns effect, while at high output levels the reverse is true.

The Short-Run Average Total Cost Curve Is -Shaped Because