If Marginal Cost Is Above Average Total Cost, Average Total

question 124

True/False

If marginal cost is above average total cost, average total cost must be falling, whether marginal cost is rising or falling.

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Definitions:

Posttax Distribution

The distribution of income or assets among various groups after accounting for the effects of taxation.

Transfer Distribution

The allocation or reallocation of income or wealth through mechanisms other than market transactions, such as taxation or welfare payments.

Noncash Transfer

A government transfer payment in the form of goods and services rather than money, for example, food stamps, housing assistance, and job training; also called in-kind transfers.