Which of the Following Statements Is True

question 55

Multiple Choice

Which of the following statements is true ?

• A) When marginal cost is below average cost, average cost rises; when marginal cost is above average cost, average cost falls.
• B) The marginal product is the output per unit of a variable input.
• C) Average variable cost and average fixed cost are U-shaped curves.
• D) When marginal productivity of a variable input is falling then marginal costs of production must be rising.

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Definitions:

Monopolists

Entities that are the sole providers of a particular product or service in a market, giving them significant control over market price.

World Market

The global arena where goods, services, and financial assets are traded across countries.

Monopsony

A market structure in which there is only a single buyer of a good, service, or resource.

Minimum Wage

The lowest legal salary that workers can be paid by employers, set by government law or policy.