In a Short-Run Production Process, the Marginal Cost Is Rising

question 8

Multiple Choice

In a short-run production process, the marginal cost is rising and the average variable cost is falling as output is increased. Thus,

• A) average fixed cost is constant.
• B) marginal cost is above average variable cost.
• C) marginal cost is below average fixed cost.
• D) marginal cost is below average variable cost.

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Definitions:

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A long, flat bone located in the central part of the chest, connecting the rib bones and supporting the collar bone.

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