When Marginal Cost Is Less Than Average Total Cost, ______

question 14

Multiple Choice

When marginal cost is less than average total cost, ______ as output increases.

• A)average total cost must be increasing
• B)average variable cost must be decreasing
• C)average fixed cost must be increasing
• D)average total cost must be decreasing

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Definitions:

Environmental Protection

The practice of safeguarding the natural environment through conservation, regulation, and sustainable practices.

Consumer Safety

Refers to the efforts and policies that protect consumers from products, services, or practices that may cause harm.

Principal-Agent Problem

A conflict in priorities between a person or group making decisions on behalf of another person or group.

Political Corruption

The use of powers by government officials for illegitimate private gain.