If Marginal Cost Is at Its Minimum

question 24

Multiple Choice

If marginal cost is at its minimum,

• A)total output is at its maximum.
• B)average total cost is at its minimum.
• C)total cost is at its maximum.
• D)marginal product is at its maximum.
• E)average variable cost is at its minimum.

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Definitions:

Service Firms

Companies that provide intangible products or services to consumers or other businesses.

Capacity Decisions

Capacity decisions are strategic choices made by businesses regarding the amount of production resources available to meet demand, including facilities, equipment, and labor force.

Maximize Profit

The process of making business decisions that increase the difference between total revenue and total costs to the highest possible level.

Constant Output Rate

A production strategy where goods or services are produced at a uniform rate, maintaining a steady level of output over time.