If a Firm's Average Total Costs Fall as It Produces

question 188

Multiple Choice

If a firm's average total costs fall as it produces a larger output,

• A) average variable cost must also decline as output expands.
• B) marginal cost must also decline as output expands.
• C) average fixed cost must be less than average variable costs.
• D) marginal cost must be less than average total cost.

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Definitions:

Neural Circuit

A functional group of neurons, typically consisting of one or more afferent neurons, one or more interneurons, and one or more efferent neurons.

Schwann Cell

A type of glial cell in the peripheral nervous system which forms the myelin sheath around neuronal axons, enabling faster transmission of electrical signals.

Myelin Sheath

The insulating layer around many nerve fibers, consisting of protein and fatty substances, which enables faster transmission of electrical impulses.

Axon

A long, slender projection of a neuron that conducts electrical impulses away from the neuron's cell body.