Use the following to answer question(s): A Firm's Cost Curves

-(Exhibit: A Firm's Cost Curves) The vertical distance between curves X and W decreases as output increases.This results from:
A) rising marginal cost.
B) rising total cost.
C) rising total variable cost.
D) declining average fixed cost.

Question

Use the following to answer question(s): A Firm's Cost Curves
 
-(Exhibit: A Firm's Cost Curves) The vertical distance between curves X and W decreases as output increases.This results from:
A) rising marginal cost. 
B) rising total cost. 
C) rising total variable cost. 
D) declining average fixed cost.

Quizplus · Accepted Answer

The vertical distance between curves X and W represents average fixed cost, and since it is decreasing as output increases, it means that average fixed cost is declining.

Use the Following to Answer Question(s): a Firm's Cost Curves