-In the above figure, as output increases, the distance between curves B and C decreases because
A) total cost decreases as output increases.
B) average fixed cost decreases as output increases.
C) there are diminishing returns to average total cost.
D) there are increasing marginal costs as output increases.

Question

-In the above figure, as output increases, the distance between curves B and C decreases because
A) total cost decreases as output increases. 
B) average fixed cost decreases as output increases. 
C) there are diminishing returns to average total cost. 
D) there are increasing marginal costs as output increases.

Quizplus · Accepted Answer

The distance between curves B and C decreases as output increases because average fixed cost decreases with increased output, spreading the fixed costs over more units.

-In the Above Figure, as Output Increases, the Distance Between