Short- Run Cost Curves Are Eventually Upward- Sloping Because of the Effects

question 107

Multiple Choice

Short- run cost curves are eventually upward- sloping because of the effects of

• A) decreasing total product.
• B) increasing fixed costs.
• C) diminishing marginal product.
• D) the increasing price of variable inputs.
• E) increasing marginal productivity of the variable inputs.

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Definitions:

Normal Distribution

A probability distribution that is symmetric around the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Standard Deviation

A gauge for the extent of variability or scatter among a group of numbers, highlighting the deviation of these values from their average.

Mean

The average of a set of numerical values, calculated by summing them together and then dividing by the number of observations.

Standard Normal

A normal distribution with a mean of 0 and a standard deviation of 1.