As Output Increases

question 322

Multiple Choice

As output increases,

• A)average variable cost becomes smaller and smaller.
• B)the difference between average total cost and average variable cost decreases.
• C)marginal cost increases continuously.
• D)the difference between average total cost and average variable cost becomes greater and greater.

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Definitions:

Payoff

The outcome or return from an investment or decision, often expressed in terms of profit or loss.

Probability

Probability quantifies the likelihood of an event occurring, ranging from 0 (impossible) to 1 (certain), and is a fundamental concept in statistics.

Standard Deviation

A statistical measure of the dispersion or variation in a set of values, indicating how spread out the values are from the mean.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from the mean.