Average variable cost tends to fall, stabilize and rise as output increases.

True

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False

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Solution

The correct option is A True
Average variable cost tends to fall, stabilise and rise as output increases due to the law of variable proportions.

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Similar questions

Q.
As output rises, the difference between total cost and total variable cost tends to fall.

Q. Does average fixed cost fall as output rises?

Why does the difference between average total cost and average variable cost decrease as the output is increased? Can these two be equal at any level of output? Explain.

Q.
Even when marginal cost is rising, average variable cost may fall.

Q. If marginal cost is above average variable cost at a time when output is rising, then ______________.

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Average variable cost tends to fall, stabilize and rise as output increases.

The correct option is A TrueAverage variable cost tends to fall, stabilise and rise as output increases due to the law of variable proportions.

The correct option is A True
Average variable cost tends to fall, stabilise and rise as output increases due to the law of variable proportions.