When there are fixed costs and a constant marginal cost a. The average fixed cost function is flat b. The average variable cost function is flat, and the average cost function is increasing c. The average cost function intersects the marginal cost function at a minimium of the average cost function d. The average variable cost function is increasing, and the average cost function is decreasing e. The average variable cost function is flat, and the average cost function is decreasing
When there are fixed costs and a constant marginal cost a. The average fixed cost function is flat b. The average variable cost function is flat, and the average cost function is increasing c. The average cost function intersects the marginal cost function at a minimium of the average cost function d. The average variable cost function is increasing, and the average cost function is decreasing e. The average variable cost function is flat, and the average cost function is decreasing
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter7: Production Economics
Section: Chapter Questions
Problem 5E
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When there are fixed costs and a constant marginal cost
a. The average fixed cost function is flat
b. The average variable cost function is flat, and the average cost function is increasing
c. The average cost function intersects the marginal cost function at a minimium of the average cost function
d. The average variable cost function is increasing, and the average cost function is decreasing
e. The average variable cost function is flat, and the average cost function is decreasing
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