The Marginal Cost Curve

question 110

Multiple Choice

The marginal cost curve

• A)Is not affected by changes in the price of variable inputs.
• B)Slopes downward to the right as output increases.
• C)Is the long-run supply curve for a competitive firm at prices below the AVC curve.
• D)Is the short-run supply curve for a competitive firm at prices above the AVC curve.

---

Definitions:

Bowed Inward

A description often used in economics to illustrate a production possibility frontier that indicates increasing opportunity costs for producing goods.

Budget Constraint

The limit on the consumption bundles that a consumer can afford to purchase based on their income and the prices of goods and services.

Goods X

A placeholder term typically used in economic models to represent a generic good or product.

Marginal Rate

This refers to the rate at which one variable changes with respect to a change in another variable, commonly used in economics and finance to describe rates of substitution and transformation.