The _____________________ curve will always lie below the curve for average cost because average cost includes _____________ in the numerator of the calculation.
A) marginal cost; total costs
B) marginal cost; fixed costs
C) average variable cost; fixed costs
D) average variable cost; total costs

Question

Quizplus · Accepted Answer

The average variable cost curve will always lie below the curve for average cost because average cost includes fixed costs in the numerator of the calculation, which are not included in the calculation of average variable cost.

The _____________________ Curve Will Always Lie Below the Curve for Average