Answered: Which one of the following types of…

Which one of the following types of short-run costs declines over the whole range of output? a. Total fixed cost. b. Total cost. c. Marginal cost. d. Total variable cost. e. Average fixed cost.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 19RQ: What shapes would you generally expect each of the following cost curves to have: fixed costs,...

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Concept explainers

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.

Question

Q25

Which one of the following types of short-run costs declines over the whole range of output?

Total fixed cost.

Total cost.

Marginal cost.

Total variable cost.

Average fixed cost.

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What shape of a long-run average cost curve illustrates economies of scale, constant returns to scale, and diseconomies of scale?
Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?
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