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:

Neutral Third Party

An unbiased individual or group engaged to mediate or arbitrate between conflicting parties.

Mediation

A form of alternative dispute resolution where a neutral third party, the mediator, helps disputing parties find a mutually satisfactory solution.

Dispute

A disagreement or argument about something important.

Compel Arbitration

A legal process where a court requires disputing parties to resolve their issues through arbitration rather than litigation.