If the Marginal Cost of Producing the Tenth Unit of Output

question 134

True/False

If the marginal cost of producing the tenth unit of output is $3, and if the average total cost of producing the tenth unit of output is $2, then at ten units of output, average total cost is rising.

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Definitions:

Note Receivable

A promissory note from the payee’s point of view.

Promissory Note

A written promise to pay a specified amount of money, usually with interest, at a determined future date.

Payee

The person or company to whom the check is payable.

Drawer

Person who writes a check.