The range of output over which a firm's average variable cost is decreasing is the same as the range over which its
A) marginal cost is increasing.
B) average fixed cost is decreasing.
C) average product is increasing.
D) average product is decreasing.

Question

Quizplus · Accepted Answer

When average variable cost is decreasing, it typically corresponds to the range where average product is increasing due to increasing returns to the variable input.

The Range of Output Over Which a Firm's Average Variable