Suppose That When Output Is 20, Marginal Cost Is $20

question 117

Multiple Choice

Suppose that when output is 20, marginal cost is $20, and average total cost is $30. Then which of the following is most likely to be true?

• A) Average total cost is declining.
• B) Average total cost is constant.
• C) Average total cost is rising.
• D) Average total cost is less than average fixed cost.

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Definitions:

Directly Inserts

The process by which certain structures, like tendons, attach directly to bones or other tissues.

Digits

Digits refer to the fingers and toes in humans and other animals, which are essential for various functions such as grasping and balance.

Index Finger

The second digit of the human hand, located between the thumb and the middle finger, often used for pointing.

Sternocleidomastoid

A muscle located in the neck that is responsible for turning the head side to side and nodding.