The Short-Run Average Total Cost Curve Is U-Shaped Because

question 284

Multiple Choice

The short-run average total cost curve is U-shaped because

• A)average fixed costs decline continuously as output increases.
• B)of increasing and diminishing returns.
• C)of economies and diseconomies of scale.
• D)minimum efficient scale is encountered.

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Definitions:

Amputated

The surgical removal of a body part, typically a limb or digit, due to injury, disease, or medical condition.

Axons

Long, slender projections of nerve cells (neurons) that conduct electrical impulses away from the neuron's body.

Capsaicin

A chemical compound found in chili peppers that causes the sensation of heat or burning when consumed or applied to the skin.

Jalapeno Peppers

A variety of medium-sized, green or red pepper that possesses a warm, burning sensation when eaten, belonging to the species Capsicum annuum.