For small quantities of output, average variable cost decreases as output increases due to:
举一反三
- If average variable cost decreases as output increases, then:
- Average variable cost and average total costs get closer together as output increases because:
- Which type of cost always increases immediately when output increases?
- As output increases, total cost also increases. Therefore:
- In the long run Firm A incurs total costs of $1,200 when output is 30 units and $1,600 when output is 40 units. Firm A exhibits_________. A: constant returns to scale because average total cost is constant as output rises B: diseconomies of scale because total cost is rising as output rises C: economies of scale because average total cost is falling as output rises D: diseconomies of scale because average total cost is rising as output rises