By the Transitivity Property,if a ≻ B and B ≻

question 124

Multiple Choice

By the transitivity property,if A ≻ B and B ≻ C then:

• A) A ≺ C
• B) A ≻ C
• C) A ∽ C
• D) B ∽ C

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Definitions:

Diminishing Returns

A principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, will begin to decrease.

Average Total Cost

The total cost of production divided by the quantity of output produced.

Economies of Scale

Enterprises achieve cost benefits from their operation size, resulting in a reduction of cost per output unit as the scale expands.

Average Variable Cost

The total variable costs divided by the quantity of output produced; it fluctuates with production volume.