If Average Cost Is Declining

question 92

Multiple Choice

If average cost is declining,

• A)marginal cost must be below average cost.
• B)firms would go bankrupt if all prices were set equal to marginal costs.
• C)marginal cost may be declining or increasing.
• D)All of the above are correct.

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Definitions:

Displaying Genitals

The act of exposing one's sexual organs in a public or private setting, which can vary in social acceptability based on context.

Unsuspecting Stranger

Describes an individual who is unaware of and unprepared for a particular situation or action that may occur, often used in contexts involving deception or surprise.

Transvestism

The practice of dressing and presenting oneself in a style or manner traditionally associated with the opposite sex, often for emotional or sexual satisfaction.

Transvestic Disorder

A condition characterized by an intense sexual arousal from cross-dressing, which may cause distress or impairments in social, occupational, or other important areas of functioning.