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:

Equity

A fairness or justice in the way people are treated or the distribution of resources.

Accuracy

The level of accuracy in a measurement, calculation, or specification in how closely it matches the true value or a standard.

Power Of Attorney

The legal right to act as the attorney or agent of another person, including handling that person's financial matters.

Legal Right

A legally enforced entitlement or permission recognized by law.