When Marginal Cost Is Greater Than Average Variable Cost, Average

question 148

True/False

When marginal cost is greater than average variable cost, average variable cost must be rising.

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Definitions:

Money Supply

The total amount of money resources gathered in an economy at a certain time.

Planned Investment Spending

Expenditure on new physical capital intended by firms, which is part of aggregate spending in the economy.

Aggregate Demand Curve

A graphical representation showing the relationship between the total demand for goods and services in an economy at different price levels.

Short-Run Aggregate Supply

The supply of goods and services that firms in an economy plan on selling over a short period, taking into account the current price levels.