Answered: the effect of fixed costs upon AC as…

the effect of fixed costs upon AC as output increases the law of demand the law of constant costs the law of opportunity costs increasing and decreasing returns to scale

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter2: Thinking Like An Economist

Section: Chapter Questions

Problem 1PA

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Question

the effect of fixed costs upon AC as output increases

the law of demand

the law of constant costs

the law of opportunity costs

increasing and decreasing returns to scale

共1
# 2
#3
# 4
#5
Output
Refer to the figure above. The position of these five curves in relation to one another reflects:

Definition Definition Economic principle that states that as the price of a good or service increases, the quantity demanded by consumers decreases, while a decrease in price leads to an increase in quantity demanded, assuming all other factors affecting the demand remaining constant.

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