The Average Total Cost (ATC) Curve Will Be Negatively Sloped

question 67

Multiple Choice

The average total cost (ATC) curve will be negatively sloped so long as

• A) Average variable cost is less than average total cost.
• B) Marginal cost is greater than average total cost.
• C) Average fixed cost is less than average total cost.
• D) Marginal cost is less than average total cost.

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Definitions:

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors, enabling trade benefits.

Free Trade

International commerce that operates naturally without the interference of tariffs, quotas, or restrictions.

Domestic Consumption

Domestic Consumption is the total amount of goods and services consumed within a country, excluding those used for exports.

Domestic Price

The price of goods or services within a country's domestic market, as opposed to international or export prices.