In the Short Run, Marginal Cost Is Positive and Increasing

question 330

Multiple Choice

In the short run, marginal cost is positive and increasing at output levels where total variable cost is ________ at a(n) ________ rate.

• A) increasing; increasing
• B) increasing; decreasing
• C) decreasing; increasing
• D) decreasing; decreasing

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Definitions:

Interest-Rate Cost-Of-Funds Curve

As it relates to research and development (R&D), a curve showing the interest rate a firm must pay to obtain any particular amount of funds to finance R&D.

Expected-Rate-Of-Return Curve

As it relates to research and development (R&D), a curve showing the anticipated gain in profit, as a percentage of R&D expenditure, from an additional dollar spent on R&D.

R&D Spending

Funds allocated by businesses, organizations, or governments towards research and development in order to innovate and improve products or services.