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.

---

Definitions:

Sense of Security

The feeling or perception of being safe, protected, or free from danger or anxiety.

Homogenous

Describing a group, material, or mixture that is uniform in composition or character; similar throughout.

Spontaneous

Occurring without apparent external cause, impulsive or arising from a natural inclination or impulse.

Voluntary

Undertaken by choice or without coercion; an act done willingly.