A U-Shaped Average Total Cost Curve Implies

question 10

Multiple Choice

A U-shaped average total cost curve implies

• A)First diminishing returns,and then increasing returns.
• B)First marginal cost below average total cost,and then marginal cost above average total cost.
• C)That total costs are at a minimum at the minimum of the average cost curve.
• D)A linear total cost curve.

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Definitions:

Interval Scale

A type of scale used in measurements that allows for the comparison of differences between objects or events, but not the ratio between them, as it lacks a true zero point.

Ratio

A mathematical relationship between two numbers indicating how many times the first number contains the second.

Statistics

is the science of collecting, analyzing, interpreting, and presenting data.

Interpreting Information

The process of making sense of or assigning meaning to data, texts, or situations.