If Marginal Cost Is Less Than Average Total Cost

question 49

Multiple Choice

If marginal cost is less than average total cost,

• A)average total cost is falling.
• B)average total cost is constant.
• C)average total cost is rising.
• D)there is no way to determine if average total cost is falling,constant,or rising.

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Definitions:

Part

A component or piece that combines with other pieces to form a whole machine, system, or object.

Foreign Demand

The desire and willingness of buyers from other countries to purchase goods and services.

Dollar Depreciates

A decrease in the value of the U.S. dollar relative to other currencies in the foreign exchange market, making foreign goods more expensive and U.S. exports cheaper.

Gold Standard

A monetary system in which the value of a currency is directly linked to a specified amount of gold, allowing currency to be exchanged for gold at the fixed rate.