Average Total Cost

question 68

Multiple Choice

Average total cost

• A)increases as output increases.
• B)decreases as output increases.
• C)increases if marginal cost is increasing.
• D)increases if marginal cost is greater than average total cost.
• E)both c and d

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Definitions:

Wheat Farm

A type of agricultural establishment primarily engaged in the cultivation of wheat.

Natural Monopoly

A scenario in which a single company is able to offer a product or service more cheaply than any possible rivals, usually as a result of benefiting from the economies of scale.

Profit-Maximizing

Profit-maximizing is the process or strategy employed by businesses to adjust their production and sale operations to achieve the highest possible profit.

Firm

A business organization, such as a corporation, partnership, or sole proprietorship, engaged in commercial, industrial, or professional activities.