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:

Extracting

The process of removing or obtaining a resource from its source.

Unit of Resource

A specific quantity of a resource or input used in the production of goods or services.

Deforestation

The removal of a forest or stand of trees from land which is then converted to a non-forest use, often resulting in ecological imbalance.