When there are fixed costs and a constant marginal cost O a. The average variable cost function is flat, and the average cost function is decreasing O b. The average variable cost function is increasing, and the average cost function is decreasing Oc. The average variable cost function is flat, and the average cost function is increasing Od. The average fixed cost function is flat O e. The average cost function intersects the marginal cost function at a minimium of the average cost function

When there are fixed costs and a constant marginal cost O a. The average variable cost function is flat, and the average cost function is decreasing O b. The average variable cost function is increasing, and the average cost function is decreasing Oc. The average variable cost function is flat, and the average cost function is increasing Od. The average fixed cost function is flat O e. The average cost function intersects the marginal cost function at a minimium of the average cost function

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 33CTQ: Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then...

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