As Output Increases, Average Total Cost and Average Variable Cost

question 41

Multiple Choice

As output increases, average total cost and average variable cost get closer to each other because

• A) marginal cost increases.
• B) average fixed cost decreases.
• C) marginal cost equals average variable cost at its minimum point.
• D) marginal cost equals average total cost at its minimum point.

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Definitions:

Cathexis

The investment of emotional significance in an activity, object, or idea.

Acquired Drive

An internal drive state produced when an environmental stimulus is paired with an unconditioned source of drive.

Environmental Cues

External signals or stimuli that can influence behavior and perception.

Anticipatory Goal Response

A reaction that occurs when an individual anticipates achieving a goal, motivating behaviors toward goal attainment.