Marginal Cost

question 62

Multiple Choice

Marginal cost:

• A)is equal to average cost at the minimum point of the marginal cost curve.
• B)is equal to average cost at the maximum point of the average cost curve.
• C)is decreasing whenever average cost is decreasing.
• D)is equal to average cost at the minimum point of the average cost curve.

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Definitions:

Government Spending

Expenditures by government agencies on goods and services that influence the economy.

Supply-Side Economics

An economic theory that suggests economic growth can be most effectively created by lowering taxes and decreasing regulation, to increase production.

Increasing Productive Capacity

The process or actions taken to enhance the capability of a company or economy to produce goods and services.

Monetary Policy

The process by which a central bank controls the money supply in the economy, usually with the goal of controlling inflation, interest rates, and stimulating economic growth.