When Marginal Cost Is ABOVE Average Variable Cost,average Variable Cost

question 57

Multiple Choice

When marginal cost is ABOVE average variable cost,average variable cost must be:

• A)at its minimum.
• B)at its maximum.
• C)greater than average total cost.
• D)rising.

---

Definitions:

Sweater

A knitted garment typically with long sleeves, worn over the upper body.

Overhead Expenses

General business expenses not directly attributable to a specific product or service, such as rent, utilities, and administration costs.

Break-even Price

The price at which total costs and total revenue are equal, resulting in no net gain or loss.

Costing

The process of determining the cost associated with producing or providing a product or service.