Suppose the Marginal Cost Curve in the Short Run First

question 27

Multiple Choice

Suppose the marginal cost curve in the short run first decreases and then increases.If marginal cost is decreasing,_____ must be _____ and _____ must be _____.

• A)marginal product;increasing;average fixed cost;zero
• B)average variable cost;decreasing;average fixed cost;increasing
• C)average total cost;increasing;marginal cost;decreasing
• D)marginal product;increasing;average variable cost;decreasing

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Definitions:

Decision

The process or action of choosing among alternatives, often based on analysis and information to achieve a desired goal.

Overtime

Extra hours worked beyond the regular working schedule, often compensated at a higher pay rate.

Production Constraint

A limitation or bottleneck in the production process that restricts output, efficiency, or the utilization of resources.

Profits

The financial gain achieved when the revenues from business operations exceed the expenses, costs, and taxes involved in sustaining the operation.