When the Output Elasticity of Total Cost Is Less Than

question 82

Multiple Choice

When the output elasticity of total cost is less than one,

• A)Marginal cost is less than average cost and average cost decreases as Q increases.
• B)Marginal cost is less than average cost and average cost increases as Q increases.
• C)Marginal cost is greater than average cost and average cost decreases as Q increases.
• D)Marginal cost is greater than average cost and average cost increases as Q increases.

Understand the factors contributing to the success or failure of businesses, including natural resources, human resources, capital, and entrepreneurship.

Identify and describe the main components and rights of the private enterprise system.

Recognize the role of profits as a primary incentive for business ownership and expansion.

Distinguish between not-for-profit and for-profit organizations and their roles in the economy.

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Definitions:

Future Generations

The forthcoming populations that will live on Earth in the future, whose interests are considered in sustainable development and environmental conservation.

Debt Service

The cash required to cover the repayment of interest and principal on a debt for a particular period.

Biennial Budgets

Budgets that are planned and approved for a two-year period, often used by governments to manage finances and resources more efficiently.

Global Financial Crisis

The Global Financial Crisis was a severe worldwide economic crisis that took place during the late 2000s, characterized by major failures in financial institutions, significant decreases in consumer wealth, and a sharp decline in economic activity.