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:

Cognitive Dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.

Group Support

The assistance, encouragement, and backing provided by group members to each other.

Cohesion

The degree to which members of a group or team are united in pursuing common goals and how well they bond with each other.

Entitativity

The degree to which a group is perceived as being a coherent entity, distinguished by how closely knit the group members are and the group's common attributes or goals.