If Both the Marginal Cost and the Average Variable Cost

question 79

Multiple Choice

If both the marginal cost and the average variable cost curves are U-shaped,at the minimum point of the average total cost curve,the marginal cost curve must be:

• A) greater than average variable cost.
• B) less than average variable cost.
• C) equal to average variable cost.
• D) at its minimum.

Know how benchmarking can drive improvement in production and customer service.

Recognize the financial implications of inventory management and its strategies.

Understand the foundational elements and management practices that improve small business productivity.

Understand the process and importance of job analysis in human resource management.

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Definitions:

Indifference Curves

graphical representations in microeconomics illustrating combinations of goods that provide an individual with the same level of satisfaction.

Budget Constraint

A economic term that represents the limitations on the consumption choices of individuals based on their income and the prices of goods and services.

Tomatoes and Nectarines

Examples of perishable goods often used in discussions about agriculture and consumer choice.

Marginal Utility

The extra satisfaction or utility that an individual gains from consuming an additional unit of a good or service.