If Marginal Cost Exceeds Average Variable Cost

question 154

Multiple Choice

If marginal cost exceeds average variable cost,

• A)average variable cost is negative
• B)average variable cost is increasing
• C)marginal cost is greater than average total cost
• D)average variable cost is decreasing
• E)average fixed cost is increasing

---

Definitions:

Budget Constraint

A concept in economics that represents all the combinations of goods and services a consumer can afford given their income level and the prices of goods.

Good X

Good X typically represents a hypothetical product used in economic models and problems to explain various concepts.

Good Y

Refers to a specific product or commodity in an economic model or discussion, distinct from others by its characteristics or use case.

Budget Constraint

The limitations on the consumption patterns of individuals or households, given their income and the prices of goods and services.