Which of the Following Statements Is Correct

question 81

Multiple Choice

Which of the following statements is correct?

• A) When the marginal cost curve is above the average cost curve, the average cost curve must be rising.
• B) When the marginal cost curve is below the average cost curve, the average cost curve must be rising.
• C) When MR = MC, the average cost curve is at its minimum point.
• D) When MR = P, the average cost curve is at its minimum point.

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Definitions:

Sales Tax

A tax imposed on sales of goods and services, typically calculated as a percentage of the selling price.

Tax Rate Structure

The system or design of tax rates, which can be progressive, regressive, or proportional, determining how taxes are applied based on income or other factors.

Marginal Tax Rate

The tax rate applied to the next dollar of income, indicating how much tax will be paid on an additional dollar of earnings.

Proportional

Pertaining to a relationship or situation where two quantities vary directly with each other.