At the Point Where Marginal Cost Equals Average Variable Cost

question 137

Multiple Choice

At the point where marginal cost equals average variable cost,

• A) b and c.
• B) marginal cost is rising.
• C) average total cost is at its minimum.
• D) average variable cost is falling.
• E) there is no total cost.

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Definitions:

Price Cut

A reduction in the selling price of goods or services, usually aimed at increasing demand or facing competition.

Elastic Demand

An instance where the demand for a product exhibits substantial sensitivity to adjustments in its pricing.

Price Rise

An increase in the cost of goods or services, often due to factors such as inflation, demand surges, or production costs.

Concept of Elasticity

An economic measure of the sensitivity of an economic variable, such as demand or supply, in response to a change in another variable, such as price.