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:

Production-centered

An approach or strategy focused primarily on the efficiency and output of the production process, often at the expense of other considerations.

Contingency Theories

A group of leadership theories suggesting that the best leadership strategy is contingent upon various internal and external situations.

Leadership Efficiency

The ability of a leader to achieve desired outcomes with minimal waste of time, effort, or resources.

Trait Approach

A perspective in leadership that suggests certain physical, social, and personal characteristics are inherent to leaders.