Explain why average total costs initially decrease and then increase as output increases
What will be an ideal response?
Initially, as output increases, both average fixed cost and average variable cost decrease. So, average total cost decreases at first. But as output increases further, diminishing returns set in and average variable cost begins to increase. Eventually, average variable cost increases more quickly than average fixed cost decreases, so average total cost increases.
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A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease
Of the new drugs introduced in the United States between 1940 and 1990, what percentage were discovered by U.S. firms?
a. 15. b. 30. c. 45. d. 60 e. 75