One of the Major Reasons for the U-Shaped Average Total

question 55

Multiple Choice

One of the major reasons for the U-shaped average total cost curve is the fact that

• A) there are increasing returns from labor regardless of the number of workers employed.
• B) there eventually are decreasing returns from labor as more workers are employed.
• C) prices fall as output increases.
• D) the average fixed cost increases as more output is produced.
• E) the variable cost decreases as more output is produced.

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Definitions:

Nuclei

The membrane-bound organelles found in eukaryotic cells that contain genetic material and act as the control center for cell function and regulation.

Multicellular

Organisms composed of multiple cells that perform specialized functions, in contrast to single-celled organisms.

Eukaryotes

Organisms whose cells contain a nucleus surrounded by a membrane.

Nutrients

Compounds that offer essential nourishment needed for life growth and preservation.