Which of the Following Statements Is True

question 30

Multiple Choice

Which of the following statements is true?

• A)At a high level of output, AFC is zero.
• B)If the law of diminishing marginal returns did not exist, then the marginal cost curve would not have an upward-sloping portion.
• C)The marginal cost curve cuts the average fixed cost curve at its minimum.
• D)There are no fixed costs in the short run.

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Definitions:

Trade

The exchange of goods, services, or both between parties, either within a country or between countries, often for money.

Four-Wheel Drive

A vehicle drive system where power is distributed to all four wheels simultaneously, enhancing traction.

Liable in Tort

Legal responsibility arising from a civil case in which harm has been caused to an individual or property.

Intoxicated Person

An individual whose normal capacity to act or make decisions is significantly impaired due to the consumption of alcohol or drugs.