Average Variable and Average Total Costs Get Farther Apart as Output

question 217

Multiple Choice

Average variable and average total costs get farther apart as output decreases because ________ as output decreases.

• A) diminishing returns set in
• B) average fixed costs increase
• C) marginal costs increase
• D) total and total variable costs get farther apart

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Definitions:

Relational Benefits

Relational benefits refer to the advantages gained from establishing and maintaining long-term relationships with others, often in a business or interpersonal context.

Two-Sided Argument

An argument that presents both the favorable and unfavorable points of an issue.

Peripheral Route

A method of persuasion that relies on cues outside of the argument's content, such as the speaker's credibility or attractiveness.

Cognitive Processing

The mental activities involved in understanding, processing, and remembering information.