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.

---

Definitions:

Implicit Association

The subconscious linking of two concepts or objects, which can influence attitudes, beliefs, and behaviors without the individual's awareness.

Other-Race Effect

A bias toward recognizing faces of the race one has the most exposure to, typically their own race.

Ingroup Bias

The inclination to prefer one's own group to other groups.

Outgroup Homogeneity

The tendency to view members of an outgroup as more similar to each other than they actually are, often leading to stereotypes.