Asked by maddie arveseth on May 08, 2024
Verified
For most restaurants,the average total cost curve _____ at _____ levels of output,then _____ at _____ levels.
A) falls;low;rises;high
B) rises;low;falls;high
C) rises;high;rises;low
D) falls;high;falls;low
Average Total Cost Curve
A graphical representation showing a firm's total costs divided by output at various levels of production.
Output Levels
Refers to the amount of goods or services produced by a company, industry, or economy at a given time.
Rises
An increase, elevation, or improvement in position, level, or condition.
- Analyze the effects of output levels on average total, variable, and fixed costs.
- Understand the concept of economies and diseconomies of scale in production costs.
Verified Answer
DH
Dasia HollandMay 11, 2024
Final Answer :
A
Explanation :
For most restaurants, the average total cost curve falls at low levels of output due to economies of scale, then rises at high levels due to diseconomies of scale.
Learning Objectives
- Analyze the effects of output levels on average total, variable, and fixed costs.
- Understand the concept of economies and diseconomies of scale in production costs.
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