Which of the Following Must Be True If Average Total

question 197

Multiple Choice

Which of the following must be true if average total costs are rising?

• A) Average fixed costs must be rising.
• B) Total fixed costs must be rising.
• C) Average variable costs must be falling.
• D) Marginal costs must be greater than average total costs.

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Definitions:

Mass Production

The large-scale manufacturing of large quantities of products, often using assembly lines or automated technology to achieve efficiency.

Quality Control

A process through which a business seeks to ensure that product quality is maintained or improved, involving the detection of errors.

Confidence Interval

A variety of values, obtained through statistical analysis of samples, posited to likely hold the value of an unknown population parameter.

Population Proportions

Measures that represent the fraction of individuals in a population that exhibit a particular characteristic or attribute.