Whenever Average Cost Exceeds Marginal Cost

question 12

Multiple Choice

Whenever average cost exceeds marginal cost,

• A)average cost is rising.
• B)average cost is falling.
• C)marginal cost is rising.
• D)marginal cost is falling.

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Definitions:

Crosswalk

A designated part of a road at which pedestrians have the right-of-way to cross, often marked with lines.

Statute Violation

An act or omission that contravenes a law formally enacted by a legislative body.

Implied Assumption

An unstated understanding that forms the basis of an agreement or decision, not explicitly detailed but considered as understood by all parties involved.

Known Risk

A risk that is identified, assessed, and understood by individuals or organizations involved in an activity or decision.