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.

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Definitions:

Respondents

Individuals who answer questions or provide data as part of a survey or study.

Skew

A measure of the asymmetry of the probability distribution of a real-valued random variable, indicating how much a distribution is shifted or skewed to one side.

Data

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To explain or make something clear by using examples, charts, pictures, etc., often to facilitate understanding.