If the Marginal Cost Curve Is Below the Average Variable

question 206

Multiple Choice

If the marginal cost curve is below the average variable cost curve, then

• A)average variable cost is increasing.
• B)average variable cost is decreasing.
• C)marginal cost must be decreasing.
• D)average variable cost could either be increasing or decreasing.

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Definitions:

Income Tax

A tax that governments impose on income generated by businesses and individuals within their jurisdiction.

Aggregate Demand

The total demand for all goods and services in an economy at a given overall price level and within a specified time period.

Aggregate Demand

Total economic demand for goods and services within an economy, calculated at a fixed price level during a designated time frame.

Aggregate Supply

The total supply of goods and services that firms in an economy plan to sell during a specific time period at different possible price levels.