If the Marginal Cost of the 5,000th Unit Is $0

question 110

Multiple Choice

If the marginal cost of the 5,000th unit is $0.06 and the average total cost of the 5,000th unit is $0.10:

• A) total cost is falling.
• B) average variable cost is falling.
• C) average total cost is falling.
• D) average fixed cost is rising.

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Definitions:

Genital Herpes

A sexually transmitted infection (STI) caused by the herpes simplex virus (HSV) that results in genital sores and discomfort.

Vulva

The external part of the female genital organs, including the labia majora, labia minora, clitoris, and the opening of the vagina.

Consumer Surplus

The discrepancy between the aggregate amount consumers can and will pay for a product or service and the actual amount they pay.

Total Utility

The total satisfaction or benefit received by consuming a given total quantity of a good or service.