If an Increase in Output Results in a Decrease in Average

question 104

Multiple Choice

If an increase in output results in a decrease in average total cost, the corresponding marginal cost is:

• A) less than average total cost.
• B) greater than average total cost.
• C) equal to average total cost.
• D) negative.

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Definitions:

Probability

A numeric scale from 0 to 1 indicating how probable it is for an event to occur.

Outcomes

The possible results or consequences of an action, experiment, or process.

Classical Probability

Classical probability is a theoretical probability calculation based on the assumption that all outcomes are equally likely and there are a finite number of outcomes.

Choosing

The process of making a selection from a range of options or possibilities.