In the Short Run, as Output Increases

question 216

Multiple Choice

In the short run, as output increases,

• A) the difference between average total cost and average variable cost decreases.
• B) the difference between total cost and average variable cost decreases.
• C) marginal cost eventually decreases.
• D) All of the above are correct.

---

Definitions:

Reducing Expenses

The act of cutting down on costs or spending in order to improve overall financial health.

Market Segments

Subsets of a market made up of people or organizations with one or more characteristics that cause them to demand similar product or service based on qualities of those products.

Product Prices

Product prices are the amounts sellers charge consumers to purchase goods or services.

Broad Array

refers to a wide and varied range of items, options, or choices.