In the short run, the average total cost curve always lies above the average variable cost curve.

Name: In the short run, the average total cost curve always lies above the average variable cost curve.
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Question

Quizplus · Accepted Answer

The average total cost includes both fixed and variable costs, while the average variable cost includes only variable costs. Therefore, the average total cost curve is always above the average variable cost curve in the short run.

In the Short Run, the Average Total Cost Curve Always