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.

---

Definitions:

Brainstorming

A collaborative idea-generation process where participants freely offer thoughts and solutions without judgment.

Critique

An analysis or evaluation of a work, idea, or project, often with the intention of identifying areas for improvement.

Direct Strategy

A communicative approach where the primary message or intention is presented at the beginning without preambles.

Credit Request

A formal application to a lender or financial institution asking for a loan or credit line.