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The ATC Curve for a Firm That Produces an Information

Question 179

Multiple Choice

The ATC curve for a firm that produces an information product


A) slopes downward, because AVC is constant, AFC slopes downward, and ATC = AVC + AFC.
B) slopes upward, because AFC is constant, AVC slopes upward, and ATC = AFC + AVC.
C) is U-shaped, because AVC is U-shaped, AFC slopes downward, and ATC = AVC + AFC.
D) slopes downward, because MC slopes downward, AVC is constant, and ATC = AVC +MC.

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