Examlex

Solved

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.


Definitions:

Production Function

A mathematical model that represents the relationship between the input of factors of production and the output of goods or services produced.

Marginal-Cost Curve

A graphical representation depicting how the cost of producing one additional unit of a good varies as the quantity produced changes.

Average-Total-Cost Curve

A curve that shows the average total cost of production at different levels of output, typically U-shaped due to economies and diseconomies of scale.

Average-Total-Cost Curve

A graphical representation showing how the average total cost of producing a good changes as the quantity produced changes.

Related Questions