If Average Cost Is Above Marginal Cost, Average Cost Must

question 89

True/False

If average cost is above marginal cost, average cost must be falling.

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Definitions:

Productivity

A measure of the efficiency of production, often expressed as the ratio of output to inputs in the production process.

Agriculture

The practice of cultivating land, raising crops, and feeding, breeding, and raising livestock; it is a key component of the food supply chain.

Inelastic

Describes a situation where the demand or supply for a good or service is not significantly altered when the price changes.

Bumper Crop

An unusually large agricultural harvest, often leading to excess supply and possibly lower prices.