The Short-Run Average Total Cost Curve Eventually Turns Upward to Form

question 17

Multiple Choice

The short-run average total cost curve eventually turns upward to form a U shape because:

• A) of diminishing marginal cost.
• B) of increasing average fixed cost.
• C) all factors can be varied in the long run.
• D) of diminishing marginal productivity.

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Definitions:

Duodenum

The first section of the small intestine in most higher vertebrates, where a significant part of digestion occurs.

Bile

A digestive fluid produced by the liver, stored in the gallbladder, and secreted into the small intestine to aid in the digestion and absorption of fats.

Digestive System

The complex series of organs and glands responsible for the digestion and absorption of nutrients, as well as the elimination of waste products.

Bolus

A tiny ball-shaped lump of material, particularly of food chewed right before it's swallowed.