As Output Increases, Average Cost Decreases Continually Because

question 81

Multiple Choice

As output increases, average cost decreases continually because

• A) average variable cost per unit is increasing.
• B) average fixed cost per unit is decreasing.
• C) total variable cost is increasing.
• D) total variable cost is decreasing.
• E) total fixed cost is reducing.

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Definitions:

Free Individuals

Persons who possess autonomy and the capacity to make choices unconstrained by external coercion or limitations, typically within the bounds of societal laws and norms.

Forces Of Production

in Marxist theory, refers to the means by which labor is applied to the resources of nature—such as tools, machinery, and factories—to produce goods and services.

Intellectual Resources

Assets that encompass knowledge, creativity, and innovation, contributing to an entity's competitive advantage.

Industrial Parks

Designated areas planned and zoned for the purpose of industrial development, typically offering infrastructure such as roads and utilities to support businesses.