Which of the Following Statements About Costs Is Correct

question 245

Multiple Choice

Which of the following statements about costs is correct?

• A)When marginal cost is less than average total cost, average total cost is rising.
• B)The total cost curve is U-shaped.
• C)As the quantity of output increases, marginal cost eventually rises.
• D)All of the above are correct.

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Definitions:

Primary Productivity

The amount of light energy converted to organic compounds by autotrophs in an ecosystem over a given period. Compare with secondary productivity. See gross primary productivity (GPP) and net primary productivity (NPP).

Ecosystem

An ecosystem is a community of living organisms in conjunction with the nonliving components of their environment, interacting as a system.

Algal Beds

Large, dense groups of algae that grow together on the seabed or on other surfaces underwater.

Ocean Surface Circulation

The large-scale movement of waters in the ocean surface, driven by wind, coriolis effect, and differences in water density.