Suppose the Marginal Cost Curve in the Short Run First

question 181

Multiple Choice

Suppose the marginal cost curve in the short run first decreases, then reaches a minimum, and then increases.If we are at an output where marginal cost is decreasing, then:

• A)marginal product must be increasing.
• B)average variable cost must be decreasing.
• C)average total cost must be increasing.
• D)marginal product must be increasing and average variable cost must be decreasing.

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Definitions:

Assimilation

A cognitive process that involves incorporating new information into existing cognitive schemas, perceptions, and understanding.

Organization

The coordinated arrangement or structure of parts within a system, or the process of arranging and coordinating elements to achieve a unified whole.

Accommodation

In psychology, the process of adjusting cognitive schemas to incorporate new information.

Schemes

In Piaget’s theory, actions or mental representations that organize knowledge.