In the Short Run, Which of the Following Statements Is

question 91

Multiple Choice

In the short run, which of the following statements is correct?

• A)The marginal cost curve intersects the average variable and average fixed cost curves at their minimum points.
• B)Average variable cost declines continuously as total output is expanded.
• C)Total cost will exceed variable cost.
• D)If the inputs of all resources are increased by equal amounts, total output will expand by diminishing amounts.

---

Definitions:

Ability-To-Pay Philosophy

A principle that asserts taxes should be levied based on an individual's or entity's capacity to pay, implying those with higher income or wealth should pay more in taxes.

Progressive Income Tax

A tax system in which the tax rate increases as the taxable income increases, imposing higher rates on those with higher incomes.

Taxation

The process by which a government levy charges on citizens or corporate entities to finance government spending and activities.

Sales And Excise Taxes

Taxes placed on the sale or manufacture of goods and services, collected by the government.