When Average Total Cost Is at Its Minimum

question 23

Multiple Choice

When average total cost is at its minimum:

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

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Definitions:

Congressman

A member of the United States Congress, which is the legislative body of the country, including both the Senate and the House of Representatives.

Stem Cell

A cell with the unique ability to develop into specialized cell types in the body; used in medical research with the potential to treat various diseases.

Explanandum

The phenomenon or event that is to be explained in scientific and philosophical inquiries.

Hypothesis

A supposition or proposed explanation made on the basis of limited evidence as a starting point for further investigation.