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

ENGR.ECONOMIC ANALYSIS
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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
Transcribed Image Text: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
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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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