Which of the following statements about cost curves is always true?
A) ATC decreases as output increases.
B) AFC increases as output increases.
C) AFC lies above AVC.
D) ATC lies above AVC.
E) MC lies below ATC.

Question

Quizplus · Accepted Answer

ATC (Average Total Cost) always lies above AVC (Average Variable Cost) because ATC includes both AVC and AFC (Average Fixed Cost), making it inherently higher than AVC alone.

Which of the Following Statements About Cost Curves Is Always