When a firm's average variable cost is constant no matter how much is produced, A. the...
When a firm's average variable cost is constant no matter how much is produced,
A. the firm's average cost will increase as the quantity produced increases.
B. the firm's fixed cost must be zero.
C. the firm's average cost will also be constant.
D. the firm's average fixed cost will also be constant.
E. the firm's average cost will decrease as the quantity produced increases.
Homework Answers
Answer: E. the firm's average cost will decrease as the quantity produced increases.
When quantity increases, the variable cost will also get increased but the fixed cost will remain the same, so the average cost will will decrease as fixed cost will be distributed among more number of products.
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When a firm's average variable cost is constant no matter how
much is produced,
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