If Average Cost Is Decreasing

question 97

Multiple Choice

If average cost is decreasing,

• A) marginal cost equals average cost.
• B) marginal cost exceeds average cost.
• C) marginal cost is less than average cost.
• D) Not enough information is given.

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Definitions:

Autotrophs

Organisms that can produce their own food from inorganic substances using light (photosynthesis) or chemical energy (chemosynthesis).

Heterotrophs

Organisms that cannot synthesize their own food and rely on other organisms — either plants or animals — for nutrition.

Nutrient

Substances obtained from food necessary for growth, metabolism, and for other body functions.

Ecosystem

Biological community together with the associated abiotic environment; characterized by a flow of energy and a cycling of inorganic nutrients.