At What Level of Output Will Average Variable Cost Equal

question 482

Multiple Choice

At what level of output will average variable cost equal average total cost?

• A)when marginal cost equals average total cost
• B)for all levels of output in which average variable cost is falling
• C)when marginal cost equals average variable cost
• D)There is no level of output where this occurs, as long as fixed costs are positive.

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Definitions:

Inner Ear

The innermost part of the ear, containing the cochlea and vestibular system, responsible for hearing and balance.

Hair Cells

Sensory receptor cells found in the inner ear, responsible for converting sound vibrations into electrical signals for the brain to interpret.

Mechanoreceptors

Sensory nerve endings that respond to mechanical stimuli such as touch, pressure, vibration, and stretch.

Taste Description

The verbal expression used to describe the flavors perceived by the tongue, such as sweet, sour, bitter, salty, and umami.