If the Marginal Cost Curve Is Rising,which of the Following

question 106

Multiple Choice

If the marginal cost curve is rising,which of the following must be true?

• A)The average total cost curve must be rising.
• B)The average total cost curve must be below the marginal cost curve.
• C)The average total cost curve must be above the marginal cost curve.
• D)Total costs must be rising.

---

Definitions:

FMV

Fair Market Value, the price at which property would sell between a willing buyer and seller in an arm's length transaction.

Gift Tax

A federal tax on the transfer of property by gift from one individual to another with the donor being primarily responsible for paying the tax.

FMV

Fair Market Value, an estimation of the market value of a property or asset, based on what a knowledgeable, willing, and unpressured buyer would likely pay to a knowledgeable, willing, and unpressured seller in the market.

Adjusted Basis

The original cost of an asset adjusted for factors such as depreciation or improvements, used to calculate capital gains or losses for tax purposes.