Average costs _______initially due to the presence of fixed costs and then rise due to _________
A)fall;decreasing marginal costs
B)fall ;increasing marginal costs
C)rise;decreasing fixed costs
D)rise;increasing fixed costs

Question

​Average costs _______initially due to the presence of fixed costs and then rise due to _________
A)​fall;decreasing marginal costs 
B)fall ;increasing marginal costs 
C)rise;decreasing fixed costs
D)​rise;increasing fixed costs

Quizplus · Accepted Answer

Average costs fall initially due to the presence of fixed costs being spread over more units of production, and then rise due to increasing marginal costs as production increases and it becomes more expensive to produce additional units.

​Average Costs _______Initially Due to the Presence of Fixed Costs

Average Costs _______Initially Due to the Presence of Fixed Costs