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

Economics

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a. True b. False Indicate whether the statement is true or false

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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.

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