Which of the following curves is not affected by the existence of diminishing returns?
A)the average fixed cost curve
B)the average variable cost curve
C)the average total cost curve
D)the marginal cost curve

Question

Quizplus · Accepted Answer

The average fixed cost curve is not affected by the existence of diminishing returns because it represents the fixed costs of production that do not vary with changes in output. Diminishing returns only affect variable costs and thus impact the shape of the other curves.

Which of the Following Curves Is Not Affected by the Existence