If a Firm's Marginal Cost Exceeds Its Average Cost, Then

question 153

True/False

If a firm's marginal cost exceeds its average cost, then its average cost must be rising.

---

Definitions:

Voluminous Paperwork

Refers to an overwhelming amount of paperwork or documents that are often complex and extensive.

Fixed Budget

A budget that sets forth expected revenue, expenses, and profit for a company over a specific period, based on the assumption of a fixed level of activity.

Flexible Budget

A financial plan that shifts in response to alterations in activity or volume.

Overhead Costs

Expenses not directly attributable to the production of goods or services, such as rent, utilities, and administration.