Typically, What Is the Shape of the Average Total Cost

question 42

Multiple Choice

Typically, what is the shape of the average total cost curve for a firm in the short run?

• A) An average total cost curve is U-shaped.
• B) An average total cost curve slopes downward as output expands and approaches the X-axis when output is very large.
• C) An average total cost curve constantly slopes upward as output expands and eventually approaches an infinite dollar amount at high rates of output.
• D) An average total cost curve is a vertical line.

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Definitions:

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