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:

Virtual Organization

An organization that operates primarily through electronic communication without a fixed physical location.

Multidivisional

A structure involving multiple, semi-independent divisions within an organization, each focused on a specific aspect of the organization's operations.

Multinational

Referring to a corporation or an entity that operates in multiple countries around the world.

Network

A group or system of interconnected people or things.