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:

Morality

Principles concerning the distinction between right and wrong or good and bad behavior.

Deontology

An ethical theory that suggests actions are morally right or wrong based on a set of rules, rather than the consequences of the actions.

Ethical Issue

A problem or situation that requires a person or organization to choose between alternatives considered either right (ethical) or wrong (unethical).

Framework For Ethics

A structured set of guidelines or principles designed to help individuals or organizations make ethical decisions.