If the Average Variable Cost Curve Is Below the Marginal

question 363

Multiple Choice

If the average variable cost curve is below the marginal cost curve, then

• A) marginal costs must be decreasing.
• B) marginal costs must be increasing.
• C) marginal costs can be either increasing or decreasing.
• D) average variable costs must be decreasing.

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Definitions:

Large Plantations

Extensive farms, especially in the past, where crops like cotton, tobacco, and sugar were grown, often with the labor of enslaved people.

Cotton Gin

A machine invented by Eli Whitney in 1793 that revolutionized the cotton industry by greatly speeding up the process of removing seeds from cotton fiber.

Plantation Owners

Individuals who owned large agricultural estates typically in the Americas, often worked by enslaved people, especially in the context of crops like tobacco and cotton.

Southern Territories

Geographic regions located in the southern part of a country or continent, which may have distinct cultural, political, or historical significance.