If the Marginal Cost (MC) Curve Is Rising and Is

question 99

Multiple Choice

If the marginal cost (MC) curve is rising and is above the average fixed cost (AFC) curve, then

• A)the AFC curve is rising.
• B)the AFC curve is declining, although the MC curve has nothing to do with this.
• C)the AFC curve is at its minimum point.
• D)the AFC curve is at its maximum point.
• E)Nothing certain can be said about the AFC curve without additional information.

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Definitions:

Founded

The act of establishing something, such as a company or organization, often marking its beginning.

Bretton Woods System

A monetary management system established in 1944 which set up fixed exchange rates for major currencies, with the US dollar convertible to gold, and led to the creation of the IMF and World Bank.

Fixed Exchange Rates

A system where the value of a currency is pegged to another currency, a basket of currencies, or a commodity such as gold, and does not fluctuate in the foreign exchange market.

Gold Standard

A monetary system in which the standard unit of currency is based on a fixed quantity of gold, ensuring stability and trust in currency value.