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:

Vocabulary Expansion

The process of learning and acquiring new words to increase the breadth of one's language understanding and expression.

Logical Extension

An advancement of an idea, argument, or discussion that naturally follows from the original premise or concept.

Fast-Mapping

The process by which children are able to learn the meaning of new words quickly, based on very limited exposure.

Overregularization

The application of rules of grammar even when exceptions occur, making the language seem more “regular” than it actually is.