If the Average Cost of Producing a Good Is Increasing

question 40

Multiple Choice

If the average 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 falling.
• B) AVC is rising.
• C) MC > AVC.
• D) All of the above.

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Definitions:

Brand

A unique design, sign, symbol, words, or a combination of these, employed in creating an image that identifies a product and differentiates it from its competitors.

Quality

The measure of excellence or state of being free from defects, deficiencies, and significant variations, brought by strict and consistent adherence to measurable and verifiable standards to achieve uniformity of output.

Object

Any entity that is tangible or intangible, capable of being recognized, described, and possibly interacted with.

Emotional Ways

Approaches or methods that are heavily influenced by or appeal to emotions, often used in making decisions or in interpersonal communications.