If the Marginal Cost of Producing a Good Is Increasing

question 19

Multiple Choice

If the marginal 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 rising.
• B) AVC is rising.
• C) MC > AVC.
• D) MPL is falling.

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Definitions:

Critical-Thinking

The process of objectively analyzing and evaluating an issue in order to form a judgment.

Clustering Related

Grouping together items, data, or information based on shared qualities or characteristics to analyze patterns or relationships.

Identifying Gaps

The process of discovering missing elements, discrepancies, or areas for improvement within a given context.

Chronic Medical Problems

Long-standing, persistent health issues that affect a person's lifestyle and may require ongoing management.