Suppose You Have the Following Values for a Short-Run Production

question 51

Multiple Choice

Suppose you have the following values for a short-run production process: Q = 20, VC = 100, FC = 600 and MC = 40.Given this, we know that the:

• A)Average cost curve must be increasing
• B)Average cost curve must be decreasing
• C)Marginal cost curve must be increasing
• D)Marginal cost curve must be decreasing

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Definitions:

Stock Exchange

A marketplace where securities, such as stocks and bonds, are bought and sold.

Industrialization

The development of industries in a country or region on a wide scale, transforming economies from agrarian to industrial.

Westward Expansion

The 19th-century movement of settlers into the American West, encouraged by ideas like Manifest Destiny, leading to the growth of new territories and states.

Thomas Edison

An American inventor and businessman who developed many devices that greatly influenced life around the world, including the phonograph and the electric light bulb.