Refer to the information provided in Figure 8.4 below to answer the questions that follow. Figure 8.4
-Refer to Figure 8.4. After Point A,
A) average total costs are increasing.
B) marginal costs are decreasing.
C) average variable costs are decreasing.
D) average variable costs are increasing.

Question

Refer to the information provided in Figure 8.4 below to answer the questions that follow.  Figure 8.4
-Refer to Figure 8.4. After Point A,
A) average total costs are increasing. 
B) marginal costs are decreasing. 
C) average variable costs are decreasing. 
D) average variable costs are increasing.

Quizplus · Accepted Answer

As output increases after point A, the average variable costs start increasing due to diminishing marginal returns.

Refer to the Information Provided in Figure 8