In the Short Run, If Output Is Declining, Average

question 155

Multiple Choice

In the short run, if output is declining, average

• A) variable costs must be declining.
• B) fixed costs must be rising.
• C) total costs must be declining.
• D) variables cost must be rising.

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Definitions:

Payments

Money transferred by one party to another in exchange for goods, services, or to fulfill any other financial obligation.

Monthly Compounding

The process where interest on an investment or loan is calculated and added to the principal sum every month.

Payments

Money transferred from one party to another in exchange for goods, services, or to fulfill a contractual obligation.

Account

A record or statement of financial expenditure and receipts relating to a specific period or purpose.