In the Short Run, Average Total Cost Is

question 331

Multiple Choice

In the short run, average total cost is

• A) higher than average variable cost.
• B) equal to average variable cost.
• C) less than average variable cost.
• D) sometimes higher and sometimes lower than average variable cost.

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Definitions:

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for some degree of market power.