Average variable cost and average total costs get closer together as output increases because:
举一反三
- If average variable cost decreases as output increases, then:
- 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
- For small quantities of output, average variable cost decreases as output increases due to:
- A firm maximizes profit by operating at the level of output where A: average revenue equals average cost. B: average revenue equals average variable cost. C: total costs are minimized. D: marginal revenue equals marginal cost. E: marginal revenue exceeds marginal cost by the greatest amount.
- A perfectly competitive firm maximizes its profit by producing the output at which its marginal cost equals its ____ A: marginal revenue B: average total cost C: average variable cost. D: average fixed cost.