Economics · Cost Analysis
In the short run, the initial decline in the Average Total Cost (ATC) curve as output increases is primarily driven by the:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Constant returns to scale across all factors
- 2Rapid increase in average variable costs
- 3Continuous decline in average fixed costs✓
- 4Continuous decline in average variable costs alone
Correct answer
Continuous decline in average fixed costs
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