If Marginal Cost Is Less Than Average Variable Cost

question 93

Multiple Choice

If marginal cost is less than average variable cost,

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

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Definitions:

Outsourcing

The business practice of hiring a party outside a company to perform services or create goods that traditionally were performed in-house by the company's own employees.

Intellectual Property Theft

The unauthorized use, reproduction, or distribution of intellectual property rights, such as copyright, trademarks, and patents.

Knowledge Worker

An individual whose job involves handling or using information, rather than manual labor.

Pharmaceutical Company

An enterprise that focuses on researching, developing, manufacturing, and marketing drugs and medications.