If a firm's total cost curve is an upward-sloping straight line, then its average total cost curve will slope upward.

Question

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If a firm's total cost curve is an upward-sloping straight line, this implies that total costs increase at a constant rate as output increases. The average total cost (total cost divided by quantity) would initially decrease due to spreading fixed costs over a larger number of units, but will eventually stabilize to a constant value as variable costs are linear. It does not necessarily slope upward continuously.

If a Firm's Total Cost Curve Is an Upward-Sloping Straight