Average Total Cost of Producing 100 Units of Output Is

question 254

True/False

Average total cost of producing 100 units of output is $5. If the marginal cost of producing the 101st unit is $4, then average total cost of 101 units is less than $5.

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Definitions:

Knowledge

Information, understanding, or skill that one gets through experience or education; the theoretical or practical understanding of a subject.

Service Work

Work that involves providing a service to businesses or individual clients, customers, or consumers rather than manufacturing goods.

Sweatshops

Work environments that are characterized by poor working conditions, low wages, and long hours, often associated with the exploitation of labor in developing countries.

Exploitation

The act of treating someone unfairly in order to benefit from their work or resources.