Marginal Cost Is Equal to Average Variable Cost

question 268

Multiple Choice

Marginal cost is equal to average variable cost

• A) when average variable cost is at its minimum value.
• B) when marginal cost is at its minimum value.
• C) when average variable cost is getting smaller.
• D) when average variable cost is getting larger.

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Definitions:

Indifference Curve

A graph showing different bundles of goods between which a consumer is indifferent, meaning that the consumer has no preference for one bundle over the other.

Apples

Commonly refers to the fruit of the apple tree, but in economic terms, it can represent a simple, tangible commodity for analysis.

Bananas

A fruit that is long and curved with a soft, sweet flesh covered by a yellow peel when ripe, commonly consumed worldwide.

Nuts

Typically refers to edible seeds enclosed in a hard shell, often considered both a source of nutrition and a staple in various cuisines.