If the Total Cost of 20 Units of a Product

question 419

Multiple Choice

If the total cost of 20 units of a product is $20, and the total cost of 21 units is $21, then from 20 to 21 units of product the

• A)marginal cost is decreasing.
• B)marginal cost equals average total cost.
• C)marginal cost equals average variable cost.
• D)average total cost equals average variable cost.

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Definitions:

Hoovervilles

Makeshift shantytowns built by homeless people during the Great Depression in the United States, named after President Herbert Hoover.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, leading to high unemployment and financial distress.

Reconstruction Finance Corporation

A government corporation in the United States that provided financial support to banks, railroads, and other businesses to stimulate the economy during the Great Depression.

Purchasing Power

The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.