Which of the Following Correctly Describes the Relationship Between the Marginal

question 77

Multiple Choice

Which of the following correctly describes the relationship between the marginal cost and average variable cost curves?​

• A)Marginal Cost is always above Average Variable Cost
• B)Average Variable Cost is always above Marginal Cost​
• C)Marginal Cost crosses Average Variable Cost at Average Variable Cost's minimum point
• D)Marginal Cost crosses Average Variable Cost at Marginal Cost's minimum point
• E)both Average Variable Cost and Marginal Cost first rise and then fall

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Definitions:

Price of Output

The amount of money that a producer receives for selling one unit of a product or service in the market.

Price of Inputs

The cost of resources used in the production of goods and services, including materials, labor, and overheads.

Sunk Cost

Expenses that have already been incurred and cannot be recovered, and should not affect future economic decisions.

Remodeling

The process of improving or updating the structure, layout, or appearance of an existing building or space.