When a Firm's AC Eventually Starts to Rise, It Is

question 40

Multiple Choice

When a firm's AC eventually starts to rise, it is often because

• A)executive salaries rise sharply as output rises.
• B)the ability to manage larger and larger levels of output results in much higher administrative costs.
• C)marginal cost increases rapidly at higher output levels.
• D)firm output has started to decline.

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Definitions:

Observable Behaviors

Observable behaviors refer to actions or reactions of an individual or system that can be directly seen and measured.

Creative Part

The component of a process or system that involves innovation, imagination, and the generation of new ideas.

Active

Pertains to being engaged in action or participation, often implying energy and involvement in processes or activities.

Self

An individual's consciousness of their own identity and personal characteristics, often considered within various psychological and philosophical contexts.