Which of the Following Costs Exhibits Both Decreasing and Increasing

question 83

Multiple Choice

Which of the following costs exhibits both decreasing and increasing marginal costs over a specific range of activity?

• A) Semivariable cost.
• B) Curvilinear cost.
• C) Step-fixed cost.
• D) Step-variable cost.
• E) Fixed cost.

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Definitions:

Binding Price Floor

A price floor set above the equilibrium market price, causing a surplus by preventing the market price from falling to its equilibrium level.

Sellers

Individuals or entities that offer goods or services for sale to potential buyers.

Price Ceiling

A government-imposed maximum price that can be charged for a good or service, intentionally set below the market equilibrium to protect consumers.

Shortage

A situation in which the demand for a good or service exceeds its supply in a market.