Average Total Cost Minus Average Variable Cost ________ as Output

question 46

Multiple Choice

Average total cost minus average variable cost ________ as output increases because ________ as output increases.

• A) decreases and then increases; marginal cost initially decreases and then increases
• B) decreases; average fixed cost decreases
• C) decreases; marginal returns diminish
• D) decreases; economies of scale are present

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Definitions:

Hippocampus

A major component of the brain involved in memory formation and spatial navigation, located in the inner part of the temporal lobe.

Working Memory

A cognitive system with a limited capacity that is responsible for temporarily holding information available for processing.

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Perspective-taking Problem

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