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:

Homogeneous Catalyst

A catalyst that is in the same phase (solid, liquid, or gas) as the reactants, facilitating the reaction uniformly.

Physical State

The physical state refers to the distinct forms that different phases of matter take on, primarily solid, liquid, and gas.

Reactant

A substance that undergoes chemical changes in a reaction.

Reaction Intermediate

A transient species formed during a chemical reaction that does not appear in the overall reaction equation.