As Long as Output Increases

question 11

Multiple Choice

As long as output increases

• A) average total costs decrease.
• B) average variable costs decrease.
• C) average fixed costs decrease.
• D) marginal costs decrease.

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Definitions:

Unit Elasticity

A situation where a change in the price of a product leads to a proportional change in the quantity demanded or supplied.

Demand

The quantity of a good or service that consumers are willing and able to purchase at a given price over a specified period of time.

Unit Elasticity

A circumstance where the percentage variation in the quantity that is either demanded or supplied matches the percentage variation in its price.

Demand

The amount of a product or service that shoppers are ready and capable of buying at different price levels within a specific period.