By using more labour to produce more output, a firm can always reduce its
A) average fixed cost.
B) marginal cost.
C) average total cost.
D) average variable cost.

Name: By using more labour to produce more output, a firm can always reduce its A) average fixed cost. B) marginal cost. C) average total cost. D) average variable cost.
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Question

Quizplus · Accepted Answer

Average fixed cost decreases as output increases because fixed costs are spread over more units of output.

By Using More Labour to Produce More Output, a Firm