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-Figure 53 Shows a Firm's Marginal Cost, Average Total Cost, and and Average

Question 97

Multiple Choice

  -Figure 5.3 shows a firm's marginal cost, average total cost, and average variable cost curves. For an output level greater than Q = 100, the average total cost curve is upward-sloping because A)  decreasing average fixed cost outweighs increasing average variable cost. B)  diminishing returns are not severe enough to outweigh decreasing average fixed cost. C)  increasing average variable cost outweighs decreasing average fixed cost. D)  marginal cost is increasing.
-Figure 5.3 shows a firm's marginal cost, average total cost, and average variable cost curves. For an output level greater than Q = 100, the average total cost curve is upward-sloping because


A) decreasing average fixed cost outweighs increasing average variable cost.
B) diminishing returns are not severe enough to outweigh decreasing average fixed cost.
C) increasing average variable cost outweighs decreasing average fixed cost.
D) marginal cost is increasing.

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