When a firm's average variable cost is constant no matter how much is produced,
A)the firm's average cost will increase as the quantity produced increases.
B)the firm's fixed cost must be zero.
C)the firm's average cost will also be constant.
D)the firm's average fixed cost will also be constant.
E)the firm's average cost will decrease as the quantity produced increases.

Question

Quizplus · Accepted Answer

When the average variable cost remains the same,average cost decreases continually as the quantity produced increases.

When a Firm's Average Variable Cost Is Constant No Matter