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    Economics-Microeconomics
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    Exam 11: Output and Costs
  5. Question
    Average Total Cost Minus Average Variable Cost ________ as Output
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Average Total Cost Minus Average Variable Cost ________ as Output

Question 46

Question 46

Multiple Choice

Average total cost minus average variable cost ________ as output increases because ________ as output increases.


A) decreases and then increases; marginal cost initially decreases and then increases
B) decreases; average fixed cost decreases
C) decreases; marginal returns diminish
D) decreases; economies of scale are present

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