The Short-Run Average Total Cost Curve Is U-Shaped Because Average

question 204

Multiple Choice

The short-run average total cost curve is U-shaped because average fixed costs ________ and average variable costs ________ eventually as quantity produced increases.

• A) increase; increase
• B) increase; decrease
• C) decrease; increase
• D) decrease; decrease

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Definitions:

Compliance

The act of conforming to a request, rule, or standard.

Group Polarization Effect

The tendency for a group's prevailing opinions to become more extreme following group discussion.

Risky Shift

The phenomenon where groups collectively decide on riskier actions or decisions than individuals would make on their own.

Believe More Strongly

The increased conviction or acceptance in the truth or existence of something.