Figure 7.5
-Refer to Figure 7.5.Curve G approaches curve F because
A)marginal cost is above average variable costs.
B)average fixed cost falls as output rises.
C)fixed cost falls as capacity rises.
D)total cost falls as more and more is produced.

Question

Figure 7.5 
-Refer to Figure 7.5.Curve G approaches curve F because
A)marginal cost is above average variable costs. 
B)average fixed cost falls as output rises. 
C)fixed cost falls as capacity rises. 
D)total cost falls as more and more is produced.

Quizplus · Accepted Answer

Curve G approaches curve F because average fixed cost falls as output rises. This is because fixed costs are spread over a larger number of units as production increases, reducing the average fixed cost per unit.

Figure 7.5 -Refer to Figure 7.5.Curve G Approaches Curve F Because