Multiple Choice
As production increases and the fixed cost is divided by larger quantities of output,average fixed cost drops.This is referred to as the _____ effect.
A) diminishing returns
B) spreading
C) constant cost
D) increasing returns
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q152: (Table: Tonya's Production Function for Apples)Use Table:
Q153: For Heidi,the marginal cost of producing one
Q154: Use the following to answer question: <img
Q155: Use the following to answer question: <img
Q156: The eventual increase in AVC as output
Q158: (Table: Lindsay's Farm)Use Table: Lindsay's Farm.Lindsay's fixed
Q159: The larger the output,the more output over
Q160: Use the following to answer question: <img
Q161: Use the following to answer question: <img
Q162: Scale is the size of a firm's