Whenever Marginal Cost Is Greater Than the Average Total Cost

question 206

Multiple Choice

Whenever marginal cost is greater than the average total cost:

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

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Definitions:

Echoes

Repetitive sounds that are heard after the original sound has been made, typically as a result of the reflection of sound waves.

Limbic System

A complex system of nerves and networks in the brain, involved with instinct and mood, controlling basic emotions and drives.

Engram

An assumed electrical circuit in the brain that corresponds to a memory trace.

Serial-Position Effect

The tendency to recall more accurately the first and last items in a series.