When Marginal Cost Is Rising, the Average Total Costs

question 67

Multiple Choice

When marginal cost is rising, the average total costs:

• A) could be rising or falling.
• B) must be rising.
• C) must be falling.
• D) must be constant.

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Definitions:

Opportunity Costs

The cost of the next best alternative that is foregone when a decision is made.

Unitising Costs

The process of breaking down costs into smaller, individual pieces or units to better analyze and manage them.

Quantitative Information

Data or information that can be measured and expressed numerically, facilitating objective analysis and decision-making.

Joint Product

A product that is produced simultaneously with one or more other products in a single production process, where the costs of production cannot be individually attributed to each product.