As output increases,it is always true that

Name: As output increases,it is always true that
Brand: Quizplus
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Question

Quizplus · Accepted Answer

C is correct because as output increases, average fixed costs decrease since fixed costs are spread over a larger number of units. Choices A, B, and D are not always true. Average total cost may eventually increase due to diseconomies of scale, average variable cost may be above or below marginal cost depending on the level of production, and total fixed costs do not change with output level.

As Output Increases,it Is Always True That