If Marginal Cost Exceeds Average Total Cost in the Short

question 204

Multiple Choice

If marginal cost exceeds average total cost in the short run, then which is likely to be true?

• A)Average total cost is increasing.
• B)Average variable cost is decreasing.
• C)Average total cost is less than average variable cost.
• D)Marginal cost is less than average variable cost.

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Definitions:

Probability

Probability is the measure of the likelihood that an event will occur, expressed as a number between 0 and 1.

Statistic

A single measure, calculated from sample data, used to summarize a characteristic of the sample.

Critical Value

A point on the scale of a test statistic beyond which the null hypothesis is rejected, often determined by the desired significance level.

Null Hypothesis

A hypothesis that assumes no statistical significance or relationship between the variables studied, serving as a default position until evidence suggests otherwise.