Average Variable Costs Are Minimized When

question 122

Multiple Choice

Average variable costs are minimized when

• A) marginal costs begin to increase.
• B) marginal costs begin to decrease.
• C) marginal cost is greater than average total cost.
• D) marginal cost equals average variable cost.

---

Definitions:

Worth of Goods

The total value or market price of all goods considered or evaluated.

Labor Supply Curve

A graphical representation showing how the quantity of labor supplied varies with changes in wages, illustrating the relationship between wage levels and the labor force participation rate.

Substitution Effect

A response to price changes in which consumers replace more expensive items with less costly alternatives.

Income Effect

The change in an individual's consumption patterns resulting from a change in their real income.