If the Average Variable Cost Curve Is Falling

question 24

Multiple Choice

If the average variable cost curve is falling,

• A)the MC curve must be below it.
• B)marginal cost is greater than average variable cost.
• C)the MC curve is necessarily falling.
• D)the MC curve is necessarily horizontal (neither rising nor falling).
• E)the MC curve is necessarily rising.

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Definitions:

High-Price Buyer

A consumer or entity that is willing to purchase goods or services at prices higher than the average market rate.

Lower Price Buyer

A consumer or organization that prioritizes purchasing goods or services at the lowest available price, often impacting supplier choices and negotiation practices.

Revenue Management

The strategic use of pricing, timing, and other variables to maximize income, often used in hotel, airline, and event ticketing industries.

Expected Profit

A forecasted financial gain, derived from projecting future income and deducting anticipated costs.