Suppose That When Output Is 20, Marginal Cost Is $20

question 117

Multiple Choice

Suppose that when output is 20, marginal cost is $20, and average total cost is $30. Then which of the following is most likely to be true?

• A) Average total cost is declining.
• B) Average total cost is constant.
• C) Average total cost is rising.
• D) Average total cost is less than average fixed cost.

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Definitions:

Organic Chemistry

A field of chemistry focused on analyzing the formation, characteristics, make-up, responses, and creation of compounds that include carbon.

N-butanol

An alcohol with a four-carbon chain, commonly used as a solvent and in the synthesis of various organic compounds.

Tert-butanol

A tertiary alcohol with the formula (CH3)3COH, known for its high octane number and as a solvent or chemical intermediate.

Sample

A small part or quantity intended to show what the whole is like.