Which type of cost always increases immediately when output increases?
举一反三
- If average variable cost decreases as output increases, then:
- As output increases, total cost also increases. Therefore:
- For small quantities of output, average variable cost decreases as output increases due to:
- Average variable cost and average total costs get closer together as output increases because:
- The marginal cost often increases asproduction increases up to a point because of efficiencies created by largeramounts.