Which of the Following Must Be True If Average Variable

question 94

Multiple Choice

Which of the following must be true if average variable costs are decreasing?

• A) Average fixed cost exceeds average total cost.
• B) Marginal cost exceeds average variable cost.
• C) Marginal cost is less than average variable cost.
• D) Marginal cost is less than average total cost.

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Definitions:

Maslow's Hierarchy

A psychological theory proposing that human needs are arranged in a hierarchy, from basic physical needs to complex self-fulfillment needs.

Psychological Needs

Fundamental human requirements such as love, esteem, belonging, and self-actualization that are essential for mental health and well-being.

Distress

A situation where a person, business, or economy is undergoing severe strain, often due to financial difficulties.

Uncertain Outcome

A situation where the result cannot be predicted with precision due to variables that are not completely known or controllable.