Suppose a firm has no fixed costs, so all its costs are variable, even in the short
Question:
a. If the firm's marginal costs are continually increasing (that is, marginal cost is increasing from the first unit of output produced), will the firm's average total cost curve have a U shape?
b. If the firm's marginal costs are $5 at every level of output, what shape will the firm's average total cost have?
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a No In this case average total cost is also always in...View the full answer
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