In the short run, as output gets larger and larger:
A)fixed cost gets smaller.
B)the average variable cost curve gets closer and closer to the average total cost curve.
C)marginal cost gets smaller.
D)average total cost decreases after the point of diminishing returns.

Question

Quizplus · Accepted Answer

In the short run, as output increases, the average fixed cost decreases, causing the average total cost to get closer to the average variable cost.

In the Short Run, as Output Gets Larger and Larger