Consider a Firm's Short-Run Cost Curves

question 43

Multiple Choice

Consider a firm's short-run cost curves.If average total cost is increasing as output rises,then

• A)total fixed costs must be increasing.
• B)average fixed costs must be increasing.
• C)average variable cost must be increasing.
• D)marginal cost must be below average total cost.
• E)average total cost is no longer equal to the sum of average variable cost and average fixed cost.

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Definitions:

Marathon

A long-distance running event with an official distance of 42.195 kilometers, typically a race, requiring endurance and stamina.

Pleasure

A feeling of happiness, enjoyment, or satisfaction derived from an experience.

Accomplishment

The achievement of a goal or the completion of a task, often resulting in a sense of satisfaction.

Inwardly Directed Hostility

Emotional aggression or anger directed towards oneself, which can result from frustration or perceived past failures.