If an Increase in Output Results in a DECREASE in Average

question 112

Multiple Choice

If an increase in output results in a DECREASE in average total cost,the corresponding marginal cost is:

• A)less than average total cost.
• B)greater than average total cost.
• C)equal to average total cost.
• D)negative.

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Definitions:

Efficient

Efficient describes achieving maximum productivity with minimum wasted effort or expense, often relating to the optimal use of resources to obtain a desired outcome.

Bureaucratic Organization

A structured administrative system governing any large institution, characterized by fixed rules, a hierarchy of authority, and a detailed division of labor.

Bouncers

Security personnel employed at venues like bars, nightclubs, or concerts to ensure safety, enforce rules, and manage entry.

Specialized Task

A job or duty that requires specific skills or expertise, usually assigned to someone proficient in that area.