Which of the Following About Costs Is Always True

question 56

Multiple Choice

Which of the following about costs is always true?

• A) When marginal costs are less than average total costs, average total costs will be decreasing.
• B) When average fixed costs are falling, marginal costs must be less than average fixed costs.
• C) When average fixed costs are rising, marginal costs must be greater than average total costs.
• D) When marginal costs are greater than average total costs, average total costs will be decreasing.

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Definitions:

Physical Dependence

A physiological state where the body becomes accustomed to a substance, requiring its presence to function normally.

Phobic Disorder

A mental health condition characterized by an excessive and irrational fear of a specific object, situation, or activity.

Intense

Describes a state or emotion that is deeply felt or extreme in nature, often implying a high degree of emotional, physical, or activity-related fervor.

Irrational Fear

A fear lacking a logical or reasonable basis, often disproportionate to the actual danger posed by the object or situation.