Which of the Following Curves Can Plausibly Go Negative

question 14

Multiple Choice

Which of the following curves can plausibly go negative?

• A)marginal revenue
• B)marginal cost
• C)average variable cost
• D)quantity supplied

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Definitions:

Utility Function

A mathematical representation of a consumer's preference ordering over a set of goods or outcomes, showing the level of satisfaction or utility derived from each.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute cheaper goods for more expensive ones.

Price

The amount of money expected, required, or given in payment for something, reflecting the value that consumers and sellers assign to a good or service.

Apples

A fruit cultivated worldwide, also used metaphorically in economics and finance to represent commodities or assets for comparative analysis.