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:

Cognitive Dissonance

A psychological state in which an individual experiences discomfort due to holding contradictory beliefs or attitudes, often leading to an alteration in one of the conflicting cognitions.

Mid-Level

Pertains to a position, status, or area that is in between the highest and the lowest levels, often implying a moderate degree of complexity or authority.

Grand

Large, magnificent, or impressive in size, appearance, or style.

Parsimonious

Describing an explanation or theory that is simple and lacks unnecessary elements, often preferred for its efficiency and effectiveness in problem-solving.