Which of the Following Statements Is Correct

question 445

Multiple Choice

Which of the following statements is correct?

• A)If marginal cost is rising, then average total cost is rising.
• B)If marginal cost is rising, then average variable cost is rising.
• C)If average variable cost is rising, then marginal cost is minimized.
• D)If average total cost is rising, then marginal cost is greater than average total cost.

---

Definitions:

Northwest-corner Rule

A method used in transportation problem solutions in operations research, starting allocation from the northwest corner of a cost matrix and moving through the matrix to minimize costs.

Transportation Problem

A type of optimization problem in operations research aimed at determining the most efficient way of allocating resources to transport goods from suppliers to consumers, minimizing cost.

Transportation Problem

A type of optimization problem in logistics aiming to determine the most efficient way to distribute goods from multiple suppliers to multiple consumers.

Shipping Cost

The expense associated with moving goods from one location to another, including packing, logistics, and transportation fees.