Which of the Following Must Be True If Average Total

question 32

Multiple Choice

Which of the following must be true if average total costs are declining?

• A) Marginal cost is less than average total cost.
• B) Marginal cost is less than average variable cost.
• C) Marginal cost is greater than average total cost.
• D) Marginal cost equals average total cost.

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Definitions:

Performance Objectives

Specific, measurable goals set to evaluate the effectiveness of employees or organizational processes.

Performance Measurement

The process of evaluating the efficiency and effectiveness of action, often through quantifiable metrics or benchmarks.

Output Standards

The specific quantitative measurements or outcomes expected from a job or task.

Task Performance

The execution or accomplishment of specific work-related activities or responsibilities.