Which of the following statements is a reflection of the fact that the average fixed cost falls as output rises? 1) The gap between the average total cost curve and the average variable cost curve becomes smaller as output rises. 2) The gap between the average total cost curve and the average variable cost curve remains the same as output rises. 3) The gap between the average total cost curve and the average variable cost curve becomes bigger as output rises. 4) The average total cost curve intersects the average variable cost curve in the long run.

Which of the following statements is a reflection of the fact that the average fixed cost falls as output rises? 1) The gap between the average total cost curve and the average variable cost curve becomes smaller as output rises. 2) The gap between the average total cost curve and the average variable cost curve remains the same as output rises. 3) The gap between the average total cost curve and the average variable cost curve becomes bigger as output rises. 4) The average total cost curve intersects the average variable cost curve in the long run.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQ

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Question

Which of the following statements is a reflection of the fact that the average fixed cost falls as output rises?

1)	The gap between the average total cost curve and the average variable cost curve becomes smaller as output rises.

2)	The gap between the average total cost curve and the average variable cost curve remains the same as output rises.

3)	The gap between the average total cost curve and the average variable cost curve becomes bigger as output rises.

4)	The average total cost curve intersects the average variable cost curve in the long run.

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