When Average Cost Is Greater Than Marginal Cost, Marginal Cost

question 437

Multiple Choice

When average cost is greater than marginal cost, marginal cost must be

• A)rising.
• B)falling.
• C)constant.
• D)The direction of change in marginal cost cannot be determined from this information.

Identify the factors that affect a firm's production decisions and profit calculations.

Recognize how changes in resource prices influence firms' production techniques and costs.

Grasp the relationship between firms' payment for resources and their overall costs and revenues.

Understand the impact of consumer incomes on market demand and the distribution of goods.

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Definitions:

Predicate

In grammar, a predicate is part of a sentence or clause that tells what the subject is doing or what is being done to the subject; in logic, it refers to the part of a sentence or proposition that asserts something about the subject.

Phrase Structure

The organizational rules and patterns that determine how words and phrases combine to form sentences in a language.

Prototype

A prototype is an early sample, model, or release of a product built to test a concept or process, serving as a typical example of a category.

Garden Path Sentences

Sentences that begin by appearing to mean one thing, but then end up meaning something else, leading the reader or listener down the metaphorical 'garden path'.