If Marginal Cost Is Less Than Average Total Cost,then _____

question 101

Multiple Choice

If marginal cost is less than average total cost,then _____

• A)marginal cost must be falling.
• B)average total cost must be increasing.
• C)average variable cost must equal average total cost.
• D)average variable cost must be decreasing.
• E)average variable cost may be increasing or decreasing.

Utilize data validation and transfer validations between cells correctly.

Apply and understand the utility of formatting features such as highlighting scales.

Employ data lookup functions within Excel effectively.

Master the use of filters and understand how to manipulate filtered data.

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Definitions:

Government-Set Barriers

Regulations and policies established by governments to control the entry of firms into certain markets or to protect domestic industries from foreign competition.

Economies of Scale

The cost advantage experienced by a firm when it increases its level of output. The average costs per unit of output decrease with the scaling up of production.

Diamond-Mining Company

An entity engaged in the extraction of diamonds from the earth through mining operations.

Diseconomies Of Scale

The phenomenon where production costs per unit increase as a firm or production process increases in size, often due to inefficiencies.