Which of the Following Statements Regarding the Relationship Between Average

question 44

Multiple Choice

Which of the following statements regarding the relationship between average cost and marginal cost is not true?

• A)When marginal cost is below average total cost,average total cost falls.
• B)When marginal cost is above average variable cost,average variable cost rises.
• C)When marginal cost is equal to average total cost,average total cost is minimized.
• D)When marginal cost is above average fixed cost,average fixed cost rises.

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Definitions:

No-fault Insurance

An insurance policy where policyholders are compensated by their own insurance company, regardless of who is at fault in an accident.

Collision Deductible

A collision deductible is the amount of money a policyholder must pay out-of-pocket for vehicle repairs before their insurance coverage pays for the remaining costs in case of a collision.

Annual Premium

The total amount paid per year for an insurance policy to remain valid and provide coverage.

No-fault Insurance

An auto insurance policy where each party's insurance pays for their losses regardless of who was at fault in the accident.