Suppose a Firm with the Usual U-Shaped Cost Curves Is

question 6

Multiple Choice

Suppose a firm with the usual U-shaped cost curves is producing a level of output such that its short-run costs are as follows: ATC = $0.37 per unit
AVC = $0.32 per unit
AFC = $0.05 per unit
MC = $0.43 per unit
Given these short-run costs,as the firm increases its output,which of the following statements is true?

• A)Marginal product of the variable factor must be decreasing.
• B)Marginal product of the variable factor must be increasing.
• C)The point of diminishing average product of the variable factor has not yet been reached.
• D)Average product of the variable factor must be increasing.
• E)Marginal product of the variable factor is at its minimum point.

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Definitions:

Adaptive Flexibility

The ability to adjust and modify behavior or thinking in response to changing environments or situations.

Human Fitness

A state of health and well-being that is achieved through regular physical activity, proper nutrition, and adequate rest.

Neuroticism

A personality trait associated with negative emotions like anxiety, depression, and irritation, often reflected in emotional instability.

Reproductive Advantages

Benefits or favorable traits that increase an organism's chances of reproducing and passing genes to the next generation.