When Average Variable Cost Is at Its Minimum

question 52

Multiple Choice

When average variable cost is at its minimum:

• A) average total cost is increasing with increases in output.
• B) average variable cost plus average fixed cost is increasing with increases in output.
• C) average total cost is equal to average variable cost.
• D) marginal cost is less than average total cost.
• E) marginal cost is greater than average total cost.

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Definitions:

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution, often seen in the mean, median, or mode.

Bimodal Distributions

A probability distribution with two different modes or peaks, indicating it has two prevalent values.

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution of data, commonly the mean, median, or mode.

Outliers

Describes data points that differ significantly from other observations; these can arise due to variability in the measurement or indicate experimental error.