If Average Cost Is Constant for All Levels of Output

question 46

Multiple Choice

If average cost is constant for all levels of output:

• A)the marginal cost curve will intersect the average cost at a single point, the minimum of average cost.
• B)marginal cost will be equal to average cost for all levels of output.
• C)marginal cost will be above average cost when average cost is increasing and marginal cost will be below average cost when average cost is decreasing.
• D)marginal cost will have a region of diminishing marginal cost.

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Definitions:

Slippery Slope Fallacy

A logical fallacy suggesting that a relatively small first step will lead to a chain of related events culminating in some significant effect, often negative, without adequate evidence to support that outcome.

Undesirable Outcome

A result or consequence that is not wanted or is considered negative.

Slippery Slope

A logical fallacy or argumentative strategy suggesting that a relatively small first step leads to a chain of related events culminating in some significant impact, often negative.

Fallacy Of Division

The erroneous reasoning that what applies to a whole must also apply to all or some of its parts.