In the Short Run,average Total Costs and Average Variable Costs

question 107

Multiple Choice

In the short run,average total costs and average variable costs converge as output increases because

• A) marginal cost is below average total cost.
• B) marginal cost is below average fixed cost.
• C) average fixed costs continually increase.
• D) average fixed costs continually decrease.
• E) total cost continually increases.

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