What Must Be Happening When Marginal Cost Is Greater Than

question 173

Multiple Choice

What must be happening when marginal cost is greater than average total cost

• A)Marginal cost is rising.
• B)Marginal cost is falling.
• C)Average total cost is rising.
• D)Average total cost is falling.

---

Definitions:

Incentive Pay

A form of compensation designed to reward employees for achieving specific goals or exceptional performance.

Performance-Based Systems

Systems that appraise and reward employees based on their performance outcomes or achievements, rather than time spent or seniority.

Monetary Rewards

Financial incentives offered to employees as recognition for their work performance, achievements, or to motivate specific behaviors.

Stock Options

A benefit often granted to employees, giving them the right to buy the company's stock at a fixed price within a specific period.