The Average Variable Cost Curve and Average Total Cost Curve

question 37

Multiple Choice

The average variable cost curve and average total cost curve become closer together as output increases because

• A) the marginal cost curve intersects the average total cost curve at its minimum.
• B) average fixed cost remains constant as output rises.
• C) average fixed cost, which is the difference between them, declines with output.
• D) output is rising more rapidly than inputs are being increased.