For small quantities of output,average variable cost decreases as output increases due to

Name: For small quantities of output,average variable cost decreases as output increases due to
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Question

Quizplus · Accepted Answer

Labor specialization increases worker productivity, which means as more workers are employed, the average variable cost decreases due to an increase in output. This is because the specialization of labor allows workers to become more efficient at specific tasks.

For Small Quantities of Output,average Variable Cost Decreases as Output