If the Average Variable Cost Curve Is Falling

question 24

Multiple Choice

If the average variable cost curve is falling,

• A)the MC curve must be below it.
• B)marginal cost is greater than average variable cost.
• C)the MC curve is necessarily falling.
• D)the MC curve is necessarily horizontal (neither rising nor falling).
• E)the MC curve is necessarily rising.

---

Definitions:

Ability and Talent

Natural aptitude or skill possessed by individuals, often seen as the innate potential that can be developed through practice and learning.

Social Stratification

The hierarchical arrangement of individuals or groups in society based on wealth, power, prestige, or other status indicators.

Kingsley Davis

A prominent American sociologist and demographer known for his theories on population and societal development.

Universal

pertains to something that is applicable everywhere or in all cases; a concept, condition, or idea that is globally accepted.