If Marginal Cost Is Greater Than Average Variable Cost, Average

question 41

Multiple Choice

If marginal cost is greater than average variable cost, average variable cost will:

• A) increase as output increases.
• B) decrease as output increases.
• C) not change as output increases.
• D) equal average total cost.

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Definitions:

Top-Down

Top-Down processing refers to a cognitive approach where perception starts with the formulation of a high-level concept, and then works down to the finer details.

Just Noticeable Difference

The smallest alteration in a stimulus that an organism can barely perceive.

Schemas

Cognitive structures that help us organize and interpret information, based on our accumulated knowledge and experience.

Sensory Input

Information received by the senses that can then be processed by the brain.