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10. The Costs of Production
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Problem 7
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Problem 15
10. The Costs of Production
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10. The Costs of Production / Graphing Costs / Problem 7
Problem 7
Why does the gap between average total cost and average variable cost decrease as output increases?
A
Because average fixed costs decrease with increased output.
B
Because marginal costs increase with increased output.
C
Because total costs decrease with increased output.
D
Because variable costs become fixed costs.
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