Which statement concerning cost concepts is correct?
A) Average total costs usually decline over the entire range of production.
B) Total fixed costs usually rise over the entire range of production.
C) Average fixed costs are usually constant over the entire range of production.
D) Total variable costs are usually constant over the entire range of production.

Question

Quizplus · Accepted Answer

Average total costs typically decline as production increases due to economies of scale, up to a certain point. Beyond this point, they might increase due to diseconomies of scale.

Which Statement Concerning Cost Concepts Is Correct