Beginning at an output of one, as output increases, average variable costs:
A)rise.
B)fall.
C)remain constant.
D)fall and then rise.

Name: Beginning at an output of one, as output increases, average variable costs: A)rise. B)fall. C)remain constant. D)fall and then rise.
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Question

Quizplus · Accepted Answer

As output increases, average variable costs typically decrease at first due to economies of scale and then increase after a certain point due to diseconomies of scale. This creates a U-shaped average variable cost curve.

Beginning at an Output of One, as Output Increases, Average