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:

Passive Resignation

An attitude of helplessness in which individuals give up trying to cope with threats or to achieve goals because they believe that no action of theirs can be fruitful.

Social Pecking Order

The hierarchical system of social organization within a group, in which individuals are ranked in terms of dominance and subordination.

Viral Infections

Diseases caused by viruses, microscopic organisms that can lead to various illnesses, from the common cold to more severe diseases.

Perceived Control

The belief or feeling that one can influence the events in their life and the outcomes of situations they are in.