If the Average Variable Cost of Producing 10 Units Is

question 80

Multiple Choice

If the average variable cost of producing 10 units is $18 and the average variable cost of producing 11 units is $20, we know that, between 10 and 11 units of output,

• A)marginal cost is increasing.
• B)average total cost is increasing.
• C)average fixed cost is increasing.
• D)total cost is either increasing or decreasing.
• E)none of the above

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Definitions:

Social Exchange Theory

A theory suggesting that social behavior is the result of an exchange process aiming to maximize benefits and minimize costs.

Equity

The concept of fairness or justice in situations, ensuring everyone has equal access to resources and opportunities.

Reciprocity

A social norm that involves exchanging goods, services, favors, or other forms of value in a mutual manner.

Self-Disclosure

The act of revealing personal information about oneself to others.