Whenever Average Total Cost Exceeds Marginal Cost

question 76

Multiple Choice

Whenever average total cost exceeds marginal cost,

• A) average total cost is rising.
• B) average total cost is falling.
• C) marginal cost is rising.
• D) marginal cost is falling.

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Definitions:

Import Quotas

Limits set by a government on the amount of a specific good that can be imported into the country.

Loanable Funds

The market model that describes the supply and demand for money that is available for borrowing and lending.

Foreign-Currency Exchange

The process of exchanging one country's currency for another, affecting trade, investments, and economic indicators.

Capital Flight

The large-scale exodus of financial assets and capital from a country due to economic instability, political unrest, or unfavorable policies.