When Marginal Cost Is Rising,what Must Happen to Average Variable

question 122

Multiple Choice

When marginal cost is rising,what must happen to average variable cost

• A)It must be rising.
• B)It must be falling.
• C)It must be constant.
• D)It could be rising or falling.

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Definitions:

Producer Surplus

The difference between the amount that producers are willing to sell a good for and the actual amount received by them.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service and the actual amount they receive.

Peanut Butter

A food paste or spread made from ground dry-roasted peanuts.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive in the market, reflecting extra benefit or profit.