When the Cost Curves Have U-Shapes, at the Point Where

question 77

Multiple Choice

When the cost curves have U-shapes, at the point where marginal cost equals average total cost:

• A) average variable cost is constant.
• B) fixed cost is declining.
• C) average total cost is at its maximum and the marginal cost is falling.
• D) average total cost is at its minimum and the marginal cost is rising.

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Definitions:

Berries

Small, juicy fruits that are typically round, soft, and of various colors - eaten as food.

Nuts

In an economic context, refers to commodities or tangible goods that are traded, consumed, and can affect markets, but more generally just a type of food.

Utility Function

A mathematical representation in economics that quantifies an individual's preference for certain goods or outcomes over others.

Nuts

Edible seeds typically encased in a hard shell, commonly consumed as snacks or used in various recipes.