When Marginal Cost Is Greater Than Average Total Cost

question 1

Multiple Choice

When marginal cost is greater than average total cost,

• A)average total cost must be increasing with output.
• B)average variable cost must be decreasing with output.
• C)average fixed cost must be increasing with output.
• D)marginal cost must be increasing with output.

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Definitions:

Debt Investments

Financial assets purchased with the expectation that the original funds will be returned over time with interest, typically including bonds or loans.

Government

The organized system through which a community or nation is ruled, involved in creating and enforcing laws.

Corporation Bonds

Long-term debt securities issued by corporations to finance their operations, acquisitions, or other significant projects.

Trading Security

A financial instrument that is bought and sold for short-term profit within the same accounting period.