If Average Cost Is Falling, Then Marginal Cost Must Be

question 63

True/False

If average cost is falling, then marginal cost must be falling.

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Definitions:

Direct Labor-Hours

The aggregate working hours of workers directly participating in creating products.

Cash Collections

The process of gathering all received cash and cash equivalents, including payments from customers and other sources.

Direct Labor Cost

The compensation given to workers who are directly engaged in manufacturing products or providing services.

Raw Materials

The basic materials from which products are made, used in manufacturing processes to produce finished goods.