Assume Both the Marginal Cost and the Average Variable Cost

question 81

Multiple Choice

Assume both the marginal cost and the average variable cost curves are U-shaped. At the minimum point on the AVC curve, marginal cost must be:

• A) greater than the average variable cost.
• B) ​less than the average variable cost.
• C) ​equal to the average variable cost.
• D) ​at its minimum.

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Definitions:

Analogy

A comparison between two things, typically for the purpose of explanation or clarification, highlighting similarities in some respects.

Inductive Generalization

A type of reasoning where conclusions about general rules are drawn from specific examples or cases.

Deductive Step

A reasoning process in deductive logic where a conclusion is logically derived from premises.

Weak

Lacking strength, effectiveness, or force in a particular context or comparison.