If the Marginal Cost of Adding an Extra Unit of Output

question 2

Multiple Choice

If the marginal cost of adding an extra unit of output exceeds average total cost,

• A) average variable cost must be decreasing as output increases.
• B) average fixed cost must be increasing as output increases.
• C) average total cost must be increasing as output increases.
• D) average total cost must be decreasing as output increases.
• E) average fixed cost must be constant.

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Definitions:

Race

A social construct used to categorize humans into large and distinct populations or groups by ancestral heritage and physical characteristics.

African Americans

A racial or ethnic group in the United States with ancestry from any of the black populations of Africa.

William Julius Wilson

William Julius Wilson is an American sociologist known for his work on race, class, and poverty in the United States, particularly his theories on the urban underclass and the impact of structural economic changes on American society.