If Average Variable Costs Increase as Output Increases, Then

question 38

Multiple Choice

If average variable costs increase as output increases, then

• A) output must be zero.
• B) total cost must be constant.
• C) total fixed cost must be increasing also.
• D) marginal cost must be greater than average variable cost.
• E) average total cost must be increasing also.

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Definitions:

Oxygen Gas

A diatomic molecule made up of two oxygen atoms (O2), essential for respiration in most terrestrial life forms and used industrially.

Fuel Source

A material that is consumed to produce energy, such as coal, oil, natural gas, or renewables like solar and wind.

Energy Form

Different manifestations of energy, such as kinetic energy, potential energy, thermal energy, electrical energy, chemical energy, and nuclear energy.

Mass-Energy Transfer

The concept that mass and energy are interchangeable, underpinning the principle of mass-energy equivalence.