Figure 11-5

-Refer to Figure 11-5.Curve G approaches curve F because
A)marginal cost is above average variable costs.
B)average fixed cost falls as output rises.
C)fixed cost falls as capacity rises.
D)total cost falls as more and more is produced.

Question

Figure 11-5
 
-Refer to Figure 11-5.Curve G approaches curve F because
A)marginal cost is above average variable costs. 
B)average fixed cost falls as output rises. 
C)fixed cost falls as capacity rises. 
D)total cost falls as more and more is produced.

Quizplus · Accepted Answer

As output increases, average fixed cost decreases because the fixed cost is spread over a larger number of units, causing curve G to approach curve F.

Figure 11-5 -Refer to Figure 11-5.Curve G Approaches Curve F Because