Solved

-As Output Increases, the Distance Between the Average Variable Cost

Question 143

Multiple Choice

  -As output increases, the distance between the average variable cost curve and average total cost curve narrows because: A)  economies of scale give way to diseconomies of scale. B)  marginal cost is increasing as the level of output increases. C)  the difference between the two curves represents average fixed cost, which is decreasing. D)  problems created by the Law of Diminishing Returns worsen.
-As output increases, the distance between the average variable cost curve and average total cost curve narrows because:


A) economies of scale give way to diseconomies of scale.
B) marginal cost is increasing as the level of output increases.
C) the difference between the two curves represents average fixed cost, which is decreasing.
D) problems created by the Law of Diminishing Returns worsen.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents