If Average Variable Cost Is Falling,then

question 86

Multiple Choice

If average variable cost is falling,then:

• A)average fixed cost is rising.
• B)marginal cost must be falling.
• C)marginal cost must be rising.
• D)marginal cost lies below average variable cost.
• E)marginal cost lies above average variable cost.

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Definitions:

Average Tax Rate

The proportion of total income that an individual or business pays in taxes, calculated by dividing the total tax paid by the taxable income.

Progressive Tax

A tax system in which the tax rate increases as the taxable amount increases, usually aimed at ensuring fairness by taxing higher incomes at higher rates.

Average Tax Rate

The fraction of total income that is paid in taxes, calculated by dividing the total tax amount by the total income.

Dollar Tax Liability

The amount of tax owed to the government, calculated in dollars, based on income, sales, imports, or other taxable activities.