When Average Total Cost Is Declining,then

question 94

Multiple Choice

When average total cost is declining,then

• A)marginal cost must be less than average total cost.
• B)marginal cost must be greater than average total cost.
• C)average total cost must be greater than average fixed cost.
• D)average variable cost must be declining.

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Definitions:

Prototype

A mental image or best example that incorporates all the features we associate with a category, used in cognitive psychology to explain how people categorize objects and information.

Exemplar

A typical or standard example of a particular concept, phenomenon, or category.

Routine Event

Activities or occurrences that are regular and predictable in one's daily life.

Concept

A general idea derived from specific instances that helps to categorize and interpret information.