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Management · Q532

Managerial Economics

Graduate and Post Graduate · Management · question 532

Q532

With the expansion of output, the short-run average cost curve, beyond a point, starts rising because

A.
More production yields lower per unit price
B.
Average fixed cost increases sharply
C.
The law of variable proportions applies to short-run production
Answer
D.
Sales expenses become much larger

Answer: Option C

Solution

Answer: Option C
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