If average variable costs increase as output increases, then Group of answer choices output must be zero. average total cost must be increasing also. total cost must be constant. total fixed cost must be increasing also. marginal cost must be greater than average variable cost
Added by Ana S.
Step 1
This could be due to factors such as diminishing returns to labor or other inputs. Show more…
Show all steps
Your feedback will help us improve your experience
Andrew Davis and 77 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Diminishing marginal returns implies Group of answer choices decreasing average variable costs. decreasing marginal costs. increasing marginal costs. decreasing average fixed costs.
Andrew D.
James K.
Average cost contains both fixed and variable costs, but marginal costs are only variable costs. Therefore marginal cost must always be less than average cost. Right? Explain.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD