Which of the Following Statements Is True

question 29

Multiple Choice

Which of the following statements is true?

• A)The marginal cost curve has an upward-sloping portion to it because of the law of diminishing marginal returns.
• B)The marginal cost curve cuts the ATC curve at its highest point.
• C)When marginal cost is rising, so must average total cost be rising.
• D)A decline in marginal cost causes the MPP (of the variable input) to decline.
• E)none of the above

Grasp the purpose and economic implications of federal government expenditures.

Understand the distinctions between progressive, regressive, and proportional taxes.

Identify direct and indirect taxes and their examples.

Know the historical events that have shaped federal fiscal policy.

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Definitions:

Cash Account

An account that reflects the amount of cash a company has on hand, which includes currencies, checks, and balances in bank accounts.

Raw Material

Basic substances in their natural, modified, or semi-processed state used to produce goods and services.

Standard Costs

Predetermined costs for materials, labor, and overhead used as a benchmark for measuring performance.

Pounds

A unit of weight commonly used in the British imperial and United States customary systems, equivalent to 0.453592 kilograms.