The Firm's Short-Run Marginal-Cost Curve Is Increasing When

question 117

Multiple Choice

The firm's short-run marginal-cost curve is increasing when

• A)marginal product is increasing.
• B)marginal product is decreasing.
• C)total fixed cost is increasing.
• D)average fixed cost is decreasing.

---

Definitions:

Breakfast Cereal

A food product made from processed grains that is often eaten as a first meal of the day with milk.

Conversion Costs

Costs incurred during the transformation of raw materials into finished products, primarily including direct labor and manufacturing overhead.

Weighted-Average Method

An inventory costing method that averages the costs of all similar items in inventory and assigns this average cost to the cost of units sold and to remaining inventory.

Canned Vegetable Soup

A processed food item made by combining vegetables and other ingredients, which are then sealed in cans and sterilized for preservation.