Average variable and average total costs get farther apart as ...

[jerry coleman]

Question 1

The average variable cost of producing 250 sundaes is $5. At this level of output, average variable cost is minimized. Which of the following statements is 
true?

◦ Marginal cost of the 251st sundae is $1,250.
◦ Average total cost is minimized at an output greater than 250 sundaes.
◦ Average fixed cost is minimized at an output less than 250 sundaes.
◦ Total cost of producing 250 sundaes is $1,250.

Question 2

Average variable and average total costs get farther apart as output decreases because ________ as output decreases.

◦ diminishing returns set in
◦ average fixed costs increase
◦ marginal costs increase
◦ total and total variable costs get farther apart

[bitingbit]

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[jerry coleman]

Thanks for the timely response, appreciate it

[EAN94]

Wow, this really help