If the Average Cost of Producing a Good Is Increasing

question 40

Multiple Choice

If the average cost of producing a good is increasing as a firm produces more of the good,then which of the following must be TRUE?

• A) AFC is falling.
• B) AVC is rising.
• C) MC > AVC.
• D) All of the above.

---

Definitions:

Attractive Man

A subjective term indicating a male individual who is considered physically appealing or desirable according to societal standards or personal preferences.

Aroused

A state of being alert, awake, or stimulated, often in a physical or emotional sense.

Drive Theory

A theory in psychology that posits behavior is motivated by drives that are internal tensions or needs that seek resolution.

Motivation

Describes the forces, either intrinsic or extrinsic, that direct and energize an individual's behavior, thoughts, and persistence in pursuing goals.