Average Total Cost Minus Average Variable Cost ________ as Output

question 46

Multiple Choice

Average total cost minus average variable cost ________ as output increases because ________ as output increases.

• A) decreases and then increases; marginal cost initially decreases and then increases
• B) decreases; average fixed cost decreases
• C) decreases; marginal returns diminish
• D) decreases; economies of scale are present

Grasp the law of diminishing marginal utility and its implications on consumption.

Learn how to analyze and calculate changes in utility from consuming different combinations of goods.

Understand the relationship between total utility and marginal utility.

Comprehend how consumer choices are influenced by changes in product prices and the concept of income effect.