If Average Total Cost Is Decreasing as More and More

question 77

Multiple Choice

If average total cost is decreasing as more and more units are produced, then marginal cost must be

• A) rising.
• B) constant.
• C) below average total cost.
• D) negative.

---

Definitions:

International Fisher Effect

An economic theory predicting that the difference in nominal interest rates between two countries is equal to the expected change in their exchange rates over a specific period.

Relative Economic Conditions

Economic circumstances in one region or country as compared to another.

Long-Run Exposure

A type of currency risk faced by firms that operate internationally over an extended period.

Exchange Rate Risk

The potential for financial loss due to fluctuations in the exchange rate between two currencies.