Average total cost minus average variable cost ________ as output ...

[pragya sharda]

Average total cost minus average variable cost ________ as output increases because ________ as output increases.
 
  A) decreases and then increases; marginal cost initially decreases and then increases
  B) decreases; average fixed cost decreases
  C) decreases; marginal returns diminish
  D) decreases; economies of scale are present

Question 2

If the demand curve for bottled water shifts rightward and the supply curve of bottled water shifts rightward, the equilibrium
 
  A) price of bottled water definitely increases.
  B) price of bottled water definitely decreases.
  C) quantity of bottled water definitely increases.
  D) quantity of bottled water definitely decreases.

[qytan]

Answer to Question 1

B

Answer to Question 2

C

[pragya sharda]

TYSM

[lkanara2]

Excellent