For Most Goods,as We Move Down an Indifference Curve

question 102

Multiple Choice

For most goods,as we move down an indifference curve:

• A)the slope gets flatter.
• B)the slope gets steeper.
• C)the slope stays the same.
• D)total utility decreases.

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Definitions:

AVC

Average Variable Cost, which is the cost of labor, materials, or overhead that changes according to the level of production output.

MC

Marginal cost, the increase in total cost that arises from an extra unit of production, important for decision-making in production and pricing.

ATC

Average Total Cost; the total cost of production (fixed plus variable costs) divided by the total quantity of output produced, representing the average cost per unit of output.

AVC

Average Variable Cost, the cost a company incurs to produce one additional unit of product, excluding fixed costs.