Question

Average variable cost is also upward sloping but is flatter than the _____.

Answer 1

The average variable cost is flatter than the average total cost curve and increases at a slower rate.

Step-by-step explanation:

The average variable cost is flatter than the average total cost curve.

While the average total cost curve is typically U-shaped, the average variable cost curve lies below it and is also typically U-shaped. This means that the average variable cost increases at a slower rate compared to the average total cost.

For example, let's say you have a business that produces 100 units. The average total cost may be $5 per unit, while the average variable cost may be $3 per unit. The average variable cost is flatter because it increases at a slower rate compared to the average total cost.