Table 13-1

-Refer to Table 13-1.For the firm whose production function and costs are specified in the table,its average-variable-cost curve is
A) constant.
B) decreasing.
C) increasing.
D) U-shaped.

Question

Table 13-1
 
-Refer to Table 13-1.For the firm whose production function and costs are specified in the table,its average-variable-cost curve is
A) constant. 
B) decreasing. 
C) increasing. 
D) U-shaped.

Quizplus · Accepted Answer

AVC = VC/Q, and as Q increases, VC increases at a faster rate, causing AVC to increase as well. Therefore, the AVC curve is increasing.

Table 13-1 -Refer to Table 13-1.For the Firm Whose Production Function and Whose