If a Firm's Marginal Cost Is Greater Than Its Average

question 65

Multiple Choice

If a firm's marginal cost is greater than its average total cost, its average total cost is

• A)increasing.
• B)constant.
• C)decreasing.
• D)not U-shaped.

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Definitions:

Interest Rates

The cost of borrowing or the reward for saving, often expressed as a percentage of the principal amount per annum.

Factories

Large buildings or complexes where goods are manufactured or assembled predominantly by machines and workers.

Equipment

The set of tools, machinery, and other apparatus necessary for the manufacture of goods or the provision of services, often considered as part of capital investment in economic analyses.

Trade Deficit

A situation where a country's imports of goods and services exceed its exports, resulting in a negative balance of trade.