Whenever Marginal Cost Is Greater Than Average Total Cost

question 274

Multiple Choice

Whenever marginal cost is greater than average total cost,

• A)average total cost is rising.
• B)marginal cost is falling.
• C)average total cost is falling.
• D)Both b and c are correct.

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Definitions:

Population Variance

A measure of the dispersion of all the values in a population, calculated as the average of the squared differences from the population mean.

Confidence Interval

An interval estimate around a sample mean within which an unknown population mean is expected to lie, at a certain confidence level.

Population Mean

The average of a set of characteristics, quantities, or values for all individuals or items in a defined population.

Population Variance

A measure of how data points in a population are spread out from the mean.