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

question 20

Multiple Choice

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

• A) below average total cost.
• B) above average total cost.
• C) between the average variable and average total cost curves.
• D) below average fixed cost.

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Definitions:

Shares Of Stock

Units of ownership interest in a corporation or financial asset, giving shareholders a proportion of the corporation's assets and profits.

Profit Margin

A financial metric representing the percentage of revenue that remains as profit after all expenses are deducted.

Return On Assets

A measure of how effectively a company uses its assets to generate profit, calculated as net income divided by average total assets.

Total Assets

The sum of all current and non-current assets owned by a company, indicating the total resources available for use in operations.