Average total cost is always ____________ average variable cost,but as output rises,the difference between them ___________.A) greater than;widensB) less than;widensC) greater than;narrowsD) less than;narrows

Question

Chaman Sandhu · Accepted Answer

Final Answer : C, Explanation :  Average total cost includes both fixed and variable costs, while average variable cost only includes variable costs. As output rises, the fixed costs get spread out over a larger number of units, causing the difference between average total cost and average variable cost to narrow. Therefore, option C is the correct choice.

Average total cost is always __ average variable cost,but as output rises,the difference between them _.

A) greater than;widens
B) less than;widens
C) greater than;narrows
D) less than;narrows

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Learning Objectives

Learning Objectives

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