If Marginal Cost Is Less Than Average Variable Cost and Output

question 134

Multiple Choice

If marginal cost is less than average variable cost and output increases, average total cost ________ and average variable cost ________.

• A) increases; increases
• B) decreases; decreases
• C) decreases; increases
• D) increases; decreases

---

Definitions:

Mnemonic Device

A tool used to improve memory by linking new information to a familiar concept or pattern.

Startling Statement

A surprising or shocking assertion used to grab attention.

Oral Presentation

A spoken presentation or speech given before an audience for the purpose of sharing information, persuasion, or entertainment.

Signposts

Indicators or markers that guide or give directions, often used metaphorically for elements in a presentation or document that guide the reader.