Which of the Following Costs Always Declines as Output Increases

question 40

Multiple Choice

Which of the following costs always declines as output increases?

• A) Average cost
• B) Marginal cost
• C) Fixed cost
• D) Average fixed cost
• E) Average variable cost

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Definitions:

Schemas

Mental structures—collections of ideas, prior knowledge, and experiences—that help organize information and guide thought and behavior.

Assimilation

The cognitive process of fitting new information into pre-existing cognitive schemas, perceptions, and understanding.

Schema

A cognitive framework or concept that helps organize and interpret information.

Grasping

The act of taking hold of something firmly with the hands or arms, which is also a reflex seen in newborns.