Assuming Fixed Costs Are Positive,over a Range of Output in Which

question 43

Multiple Choice

Assuming fixed costs are positive,over a range of output in which average total costs were constant,

• A) average variable costs would be constant as output increases.
• B) average variable costs would be falling as output increases.
• C) average variable costs would be rising as output increases.
• D) marginal cost would be less than average variable cost.

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Definitions:

Tree Ferns

Ancient group of plants with large leaves and a trunk resembling a tree, thriving mostly in tropical and subtropical regions.

Cycads

Slow-growing, palm-like plants from the order Cycadales, known for their large compound leaves and production of cones.

Seedless Vascular Plants

Plants that have vascular tissue for transporting water and nutrients but reproduce through spores rather than seeds.

Sporophytes

The diploid generation in the life cycle of plants that produces spores through meiosis, alternates with the haploid gametophyte stage.