The Short-Run Average Total Cost,average Variable Cost,and Marginal Cost Curves

question 78

Multiple Choice

The short-run average total cost,average variable cost,and marginal cost curves are all U-shaped because of
i.constant total fixed cost.
ii.increasing and then decreasing marginal returns as more labor is hired.
iii.economies and diseconomies of scale as the plant size increases.

• A) only i
• B) only ii
• C) i and iii
• D) ii and iii
• E) i, ii, and iii

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