The Below Figure Shows the Various Combinations of the Goods

question 64

Multiple Choice

The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3

-If the average variable cost of a firm is falling, then the:

• A)average fixed cost must be rising.
• B)marginal cost must be falling.
• C)marginal cost must be rising.
• D)marginal cost lies below the average variable cost.
• E)marginal cost lies above the average variable cost.

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Definitions:

Merchandise Sold

Merchandise sold refers to the completed sales or the process of selling goods that are part of a company's inventory.

Weighted Average

A calculation that takes into account the varying degrees of importance or sizes of components in a dataset, providing a measure that reflects their relative contributions.

Inventory Costing Methods

Techniques used to determine the cost of inventory sold and remaining in stock, including FIFO, LIFO, and average cost methods.

Periodic Inventory System

An inventory accounting system where updates to the inventory accounts are made periodically, typically at the end of an accounting period, rather than continuously.