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The Average Total Cost Curve and the Average Variable Cost

Question 108

Multiple Choice

The average total cost curve and the average variable cost curve grow closer as output increases because


A) the marginal cost of production intersects these curves at their minimum points
B) in the long run all costs are variable
C) the cost of labor dominates the cost of raw material inputs at high levels of output
D) the total variable costs are constant
E) the average fixed cost decreases as output increases

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