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

Question

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

Quizplus · Accepted Answer

As output increases, average fixed costs decrease because the fixed costs are spread over a larger number of units.

-In the Above Figure, Curve D Slopes Downward Because