Where Marginal Cost Is Less Than Average Cost

question 49

Multiple Choice

Where marginal cost is less than average cost,

• A) opportunity cost must have been excluded from the calculation of marginal cost.
• B) marginal cost must be falling.
• C) marginal cost must be rising.
• D) marginal cost may be rising, falling, or constant.

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Definitions:

Use

The act of employing something for a particular purpose or in a specific manner.

Chattel Mortgage

A loan arrangement where personal movable property is used as security for a debt, but the borrower retains possession of the property.

Debtor

An individual, company, or other entity that owes money or other forms of financial obligation to a creditor.

Creditor

A person or organization that is due payment from a borrower.