The shape of the average total cost curve is determined by the shape of
A)the marginal cost curve.
B)the average fixed cost curve.
C)the average product curve.
D)the firm's production function.

Question

Quizplus · Accepted Answer

The average total cost curve is influenced by the marginal cost curve because changes in marginal cost affect the average total cost, especially as output increases.

The Shape of the Average Total Cost Curve Is Determined