Average total cost minus average variable cost ________ as output increases because ________ as output increases
A) decreases and then increases; marginal cost initially decreases and then increases
B) decreases; average fixed cost decreases
C) decreases; marginal returns diminish
D) decreases; economies of scale are present
B
You might also like to view...
The highest marginal tax rate for the federal income tax in the United States is
a. 10 percent b. 28.3 percent c. 35 percent d. 45.4 percent e. 50 percent
Private goods are not excludable
a. True b. False Indicate whether the statement is true or false
The possibility that an investor will not receive full payment is called
A. the index problem. B. risk. C. credit. D. an advance.
The ________ to produce any given level of output is indicated by the point of tangency between an isocost line and the isoquant corresponding to that level of output.
A. least desirable way B. least costly way C. only possible way D. most costly way