When the Short-Run Marginal Cost Curve Is Upward-Sloping

question 109

Multiple Choice

When the short-run marginal cost curve is upward-sloping,

• A)The average total cost curve is upward-sloping.
• B)The average total cost curve is above the marginal cost curve.
• C)Diminishing returns occurs with greater output.
• D)There are diseconomies of scale.

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Definitions:

Liability

Anything that is owed to other people or institutions.

Stockholders

Individuals or entities that own shares in a corporation, making them partial owners of the company and entitling them to dividends and voting rights.

Profits

The financial gain obtained when the revenues generated from business activities exceed the expenses, taxes, and costs.

Ownership of Stock

Holding shares in a company, which represents a claim on its assets and earnings.