The Cost of Mining a Ton of Coal Is Rising

question 21

Multiple Choice

The cost of mining a ton of coal is rising faster every year. Suppose is the cost of mining a ton of coal at time t. Which of the following must be concave up? Select all that apply.

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Definitions:

Variable Expenses

Costs that change in proportion to the activity or volume of operations in a business.

Net Income

The profit of a company after all expenses and taxes have been deducted from total revenue.

Sales

The total amount earned from selling goods or services over a particular period, usually before any expenses are deducted.

Unit Selling Price

The price at which a single unit of a product is sold to customers, not including any additional fees or taxes.