Which of the Following CANNOT Be True at Any Output

question 17

Multiple Choice

Which of the following CANNOT be true at any output along a perfectly competitive firm's short-run supply curve?

• A)Average total cost is greater than marginal cost.
• B)Marginal cost is greater than average total cost.
• C)Average variable cost is greater than marginal cost.
• D)Marginal cost is greater than average variable cost.

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Definitions:

Probabilistic Model

A mathematical representation of a random system that is characterized by probabilities and randomness.

Y-Intercept

The point at which a line or curve intersects the y-axis of a coordinate system.

Slope

In the context of linear regression, the magnitude of change in the dependent variable for each unit change in the independent variable.

Residual

The difference between an observed value and the estimated value provided by a model.