The Average Total Cost Curve Indicates That

question 110

Multiple Choice

The average total cost curve indicates that

• A) as output rises in the short run, costs decline rapidly.
• B) as output rises in the short run, per unit costs initially fall but eventually rise.
• C) firms generally operate at a highly inefficient point of production.
• D) costs cannot be contained even if businesses employ the proper combination of resources.
• E) as more output is produced in the short run, average total costs must increase.

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