(exhibit: short-run costs) curve a crosses the average total cost

Short-Run Costs

(Exhibit: Short-Run Costs) Curve A crosses the average total cost curve at:

 

Short-Run Costs

(Exhibit: Short-Run Costs) Curve A declines from a cost of about $50 and a quantity of 1 to a cost of about $40 and a quantity of 2 (point F) at which time it rises again. The declining segment is due to ________ marginal returns, and the rising segment is due to _______ marginal returns.

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