If Average Variable Cost Exceeds Marginal Cost, Then

question 160

Multiple Choice

If average variable cost exceeds marginal cost, then:

• A)average variable cost is increasing and the average total cost is decreasing.
• B)the average variable cost is decreasing and the average total cost is increasing.
• C)both the average variable and average total cost are decreasing.
• D)the average variable cost is decreasing and the average total cost may be increasing or decreasing.
• E)the average variable cost may be rising or falling, but the average total cost is declining.

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Definitions:

Social Environment

The surroundings characterized by social relationships and culture that people operate within.

Dynamic Interactions

Interactions that are active and changing, involving continuous exchange and influence among individuals or systems.

Adversity

A state of hardship or affliction; challenges or difficulties one encounters.

Resiliency

The capacity to recover quickly from difficulties or adapt to change.