If a Firm's Per-Unit Costs Fall as It Produces a Larger

question 216

Multiple Choice

If a firm's per-unit costs fall as it produces a larger output,

• A) average variable cost must also decline as output expands.
• B) marginal cost must also decline as output expands.
• C) average fixed cost must be less than average variable costs.
• D) marginal cost must be less than average total cost.

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Definitions:

Balance Theory

A psychological theory suggesting that individuals strive for internal consistency among their beliefs, attitudes, and perceptions, especially in the context of interpersonal relationships.

Unit Relation

The way in which individual components or units within a system or an organization are connected and interact with one another.

Triad

A group or set of three related elements or people, often used in sociology to describe small social groups.

Latitude

denotes the angular distance of a place north or south of the Earth's equator, typically expressed in degrees.