Which of the Following Statements Best Describes the Relationship Between

question 154

Multiple Choice

Which of the following statements best describes the relationship between average total cost and marginal cost?

• A) If average total cost exceeds marginal cost, then average total cost is decreasing.
• B) If average total cost is less than marginal cost, then average total cost is constant.
• C) If average total cost exceeds marginal cost, then average total cost is increasing.
• D) If average total cost is less than marginal cost, then average total cost is decreasing.

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Definitions:

Lowest Terms

The most basic version of a fraction, in which both the top number (numerator) and bottom number (denominator) are minimized to their lowest possible values.

Mixed Numbers

Numbers that contain both an integer and a fraction part.

Improper Fractions

Fractions in which the top number (numerator) is equal to or higher than the bottom number (denominator), signifying a value of at least one.

Lowest Terms

The simplest form of a fraction, where the numerator and denominator are reduced to their smallest possible values.