The U-Shaped Average Total Cost Curve Is

question 152

Multiple Choice

The U-shaped average total cost curve is

• A) a result of firms' wanting to find the output level where cost is at its minimum.
• B) unrealistic because average total cost always increases as output increases.
• C) the result of average fixed cost falling and decreasing marginal returns as output increases.
• D) a result of constant marginal returns.
• E) a result of increasing marginal returns.

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Definitions:

Negation

The operation that takes a proposition to its opposite in truth value, often denoted by "not."

Biconditional

A logical statement in which both parts imply each other; it is true when both parts have the same truth value.

Tautologies

Statements that are true in every possible interpretation because they affirm by their structure, such as "either it will rain today or it won't."

Main Components

Fundamental parts or elements that are essential to the structure or function of something.