The U-Shaped Average Total Cost Curve Is

question 152

Multiple Choice

The U-shaped average total cost curve is

• A) a result of firms' wanting to find the output level where cost is at its minimum.
• B) unrealistic because average total cost always increases as output increases.
• C) the result of average fixed cost falling and decreasing marginal returns as output increases.
• D) a result of constant marginal returns.
• E) a result of increasing marginal returns.

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Definitions:

Polarity

A property of molecules having a distribution of charge leading to molecules having distinct positive and negative ends.

Carbon Monoxide

A colorless, odorless, and toxic gas consisting of one carbon atom and one oxygen atom, chemically represented as CO.

Polarity

A property of molecules having distinct ends with opposite charges, leading to unequal sharing of electrons.

Methane Molecule

A simple hydrocarbon with the chemical formula CH4, consisting of one carbon atom bonded to four hydrogen atoms, and is the primary component of natural gas.