In the Short Run,if Marginal Cost Is Higher Than Average

question 311

True/False

In the short run,if marginal cost is higher than average total cost,producing an extra unit of output must raise average total cost.

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Definitions:

Total Damage

The cumulative harm or loss resulting from an action or event, encompassing both material and immaterial impacts.

Market Level

A term denoting the scope or extent of a given market, which can range from local to global, affecting strategies and operations of businesses within.

Externality

A consequence of an economic activity experienced by unrelated third parties; can be positive or negative, affecting others not involved in the transaction.

Activity or Transaction

An economic event that involves a transfer or exchange of goods, services, or money between parties.