When there are fixed costs and a constant marginal cost O a. The average variable cost function is flat, and the average cost function is decreasing O b. The average variable cost function is increasing, and the average cost function is decreasing Oc. The average variable cost function is flat, and the average cost function is increasing Od. The average fixed cost function is flat O e. The average cost function intersects the marginal cost function at a minimium of the average cost function
When there are fixed costs and a constant marginal cost O a. The average variable cost function is flat, and the average cost function is decreasing O b. The average variable cost function is increasing, and the average cost function is decreasing Oc. The average variable cost function is flat, and the average cost function is increasing Od. The average fixed cost function is flat O e. The average cost function intersects the marginal cost function at a minimium of the average cost function
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 33CTQ: Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then...
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