Whenever Average Variable Cost Is Declining with Increases in Output

question 11

Multiple Choice

Whenever average variable cost is declining with increases in output:

• A) marginal cost is always declining as average total cost declines.
• B) average total cost at first decreases and then increases with output.
• C) marginal cost is always declining as average total cost increases.
• D) marginal cost at first decreases and then increases with output.
• E) marginal cost at first increases and then decreases with output.

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Definitions:

CIO

Chief Information Officer, a senior executive responsible for the management, implementation, and usability of information and computer technologies within an organization.

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The American Federation of Labor; a historic national federation of labor unions in the United States, established in 1886.

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