Which of the Following Is True of the Relationship Between

question 49

Multiple Choice

Which of the following is true of the relationship between the marginal cost function and the average total cost and average variable cost functions?

• A)If MC is greater than ATC and AVC, then ATC and AVC will increase.
• B)The ATC and AVC curves intersect the MC curve at minimum MC.
• C)The MC curve, ATC curve, and AVC curve all intersect at the same point.
• D)At each level of output, MC is equal to difference between AVC and ATC.

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Definitions:

Promissory Estoppel

A legal principle that prevents a person from going back on a promise, even if it was not formally made as a contract, if it was reasonable to rely on that promise and doing so caused harm.

Refund

A repayment to someone of money they have previously paid.

Legal Obligation

A duty enforced by law whereby an individual or entity is required to perform or refrain from performing a certain action.

Consideration

In legal terms, it's something of value exchanged between parties in a contract, making the agreement binding.