Average Variable Cost (AVC)

question 6

Multiple Choice

Average variable cost (AVC)

• A)always increases with increased output.
• B)always decreases with increased output.
• C)are always flat.
• D)may either increase, decrease, or remain flat with increased output.

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Definitions:

Multinomial Distribution

A generalization of the binomial distribution, which deals with outcomes of a experiment that can fall into more than two categories.

Categories

Distinct groups or classes into which data can be classified.

Expected Frequency

The number of times an event is predicted to occur within a specified number of trials or over a given period of time, based on probability.

Observed Frequency

The count of occurrences or instances of a particular event or characteristic in a data set.