If the Marginal Cost of Producing a Good Is Increasing

question 19

Multiple Choice

If the marginal cost of producing a good is increasing as a firm produces more of the good,then which of the following must be TRUE?

• A) AFC is rising.
• B) AVC is rising.
• C) MC > AVC.
• D) MPL is falling.

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Definitions:

Inductive Reasoning

An intellectual procedure where various propositions, all assumed to be true or generally true, are merged to derive a distinct outcome.

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses, while giving disproportionately less consideration to alternative possibilities.

Mindfulness

The state of being alert and mentally present for one’s everyday activities.

Open-Mindedness

The state of being receptive to other ways of looking at things.