If Average Cost Is Positive

question 30

Multiple Choice

If average cost is positive,

• A)marginal cost equals average cost.
• B)marginal cost exceeds average cost.
• C)marginal cost is less average cost.
• D)Not enough information is provided.

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Definitions:

Short Run

A period in economic analysis during which some factors of production are fixed, affecting production and cost decisions.

Average Variable Costs

The total variable costs (costs that vary with the level of output) divided by the quantity of output produced.

Average Costs

The total cost of production divided by the number of goods produced, representing the per-unit cost of production.

Shut-Down

Shut-down refers to the temporary or permanent cessation of operations, usually in the context of businesses or machinery.