The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3

-If the total cost of producing 2 pounds of cheese is $6 and the total cost of producing 4 pounds of cheese is $8, then:
A) marginal cost of producing cheese declines as output increases.
B) average total cost of producing cheese declines as output increases.
C) average total cost of producing cheese increases as output increases.
D) average total cost remains constant irrespective of the change in output.
E) marginal cost remains constant irrespective of the change in output.
Correct Answer:
Verified
Q11: The below figure shows the various combinations
Q12: The below figure shows the various combinations
Q13: The below figure shows the various combinations
Q14: The below figure shows the various combinations
Q15: The below figure shows the various combinations
Q17: The below figure shows the various combinations
Q18: The below figure shows the various combinations
Q19: The below figure shows the various combinations
Q20: The below figure shows the various combinations
Q21: The figure given below shows cost curves
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