Which of the Following Is False

question 185

Multiple Choice

Which of the following is false?

• A) Average fixed cost continually declines as output increases.
• B) Marginal cost is equal to the change in total cost divided by the change in quantity of output.
• C) The law of diminishing marginal returns states that, in the long run, as ever larger amounts of a variable input are combined with fixed inputs, eventually the marginal physical product of the variable input will decline.
• D) The vertical distance between the AVC curve and the ATC curve declines as more output is produced.

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Definitions:

Coefficient of Determination

A measure that indicates the proportion of the variance in the dependent variable that is predictable from the independent variable(s).

Pearson Coefficient

A measure of the linear correlation between two variables, ranging from -1 to 1, where 1 means a perfect positive correlation and -1 means a perfect negative correlation.

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together.

Population Slope

Represents the rate of change or relationship between two variables across the entire population being studied, typically in the context of linear regression.