Which of the following is characteristic of short-run costs associated with increasing levels of output?
A)The difference between average total cost and average variable cost decreases.
B)Average variable cost typically increases.
C)Average total cost is equal to the difference between average variable cost and average fixed cost.
D)Average fixed cost is constant.
E)Marginal cost is equal to the difference between total cost and total variable cost.

Question

Quizplus · Accepted Answer

In the short run, as output increases, average fixed cost decreases, causing the difference between average total cost and average variable cost to decrease.

Which of the Following Is Characteristic of Short-Run Costs Associated