As Long as the Average Variable Cost of Production Is

question 84

Multiple Choice

As long as the average variable cost of production is falling, _____.

• A) the marginal cost will also be falling
• B) the average fixed cost will be constant
• C) marginal cost will be less than average variable cost
• D) the average total cost will be equal to zero

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Definitions:

Specialization

The process by which individuals, businesses, or countries focus on producing a narrow range of products or services to gain greater efficiencies.

Production Possibility Frontier

A curve depicting the maximum feasible combinations of two products that a society can produce with existing resources and technology.

Trade

The act of buying, selling, or exchanging goods and services between people, firms, or countries.

Trade

The exchange of goods and services between people or entities, often in the context of international markets.