Which of the following explain the fall and rise (U-shape) of the average variable cost curve? ☐The law of average costs drives costs up but eventually downward with greater technological advances At higher levels of output, greater specialization and better use of the firm's capital equipment yield more efficiency Average fixed costs fall as output rises At low levels of output, production is relatively inefficient and costly, most often due to understaffing At some point the law of diminishing returns sets in
Which of the following explain the fall and rise (U-shape) of the average variable cost curve? ☐The law of average costs drives costs up but eventually downward with greater technological advances At higher levels of output, greater specialization and better use of the firm's capital equipment yield more efficiency Average fixed costs fall as output rises At low levels of output, production is relatively inefficient and costly, most often due to understaffing At some point the law of diminishing returns sets in
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Step 1: Define industrial economics
The study and evaluation of corporate financial concerns using abstract economic concepts and ideas is known as industrial economics. To boost efficiency and profitability, a complete assessment of the manufacturing chains, collaboration and advertising practices, operational processes, inexpensively created settings, and values is required.
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