If Average Variable Cost Is Falling with Increasing Output, Then

question 91

Multiple Choice

If average variable cost is falling with increasing output, then

• A)marginal cost must be less than average variable cost.
• B)marginal cost must be greater than average variable cost.
• C)average fixed cost is rising.
• D)marginal cost must be rising.
• E)marginal cost must be falling.

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Definitions:

Volcanic Ash

Fine particles of rock and volcanic glass created by explosive volcanic eruptions.

Nonvesicular Basalt

Basalt rock characterized by a solid and dense structure without vesicles, which are small cavities formed by gas bubbles.

Low Content

Refers to materials, information, or substances that are present in minimal amounts.

Ropy Texture

A geological texture characterized by smooth, undulating surfaces, commonly found in pahoehoe lava flows.