Marginal Utility Can Never Decrease

question 15

True/False

Marginal utility can never decrease.

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Definitions:

AVC

AVC, or Average Variable Cost, is the cost per unit of variable inputs divided by the quantity of output produced.

Variable Cost

Costs that change in proportion to the level of production or sales volume.

Average Total Cost

The average cost of producing one unit, determined by dividing the total production expenses by the quantity of products made.

Fixed Cost

Expenses that do not change as a function of the activity of a business, within the relevant period.