The Larger the Output,the More Output Over Which Fixed Cost

question 159

Multiple Choice

The larger the output,the more output over which fixed cost is distributed.Called the _____ effect,this leads to a _____ average _____ cost as output rises.

• A)spreading;lower;fixed
• B)spreading;higher;fixed
• C)diminishing returns;lower;variable
• D)diminishing returns;higher;variable

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