If Short-Run Average Cost Is Increasing Then

question 19

Multiple Choice

If short-run average cost is increasing then:

• A) average fixed cost must be increasing.
• B) marginal cost must be decreasing.
• C) marginal cost must be greater than short-run average cost.
• D) the production function displays decreasing returns to scale.
• E) average variable cost must be decreasing.

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Definitions:

Intoxicated Persons

Individuals whose normal capacity to act or make decisions is significantly impaired due to the consumption of alcohol or drugs.

Alcohol

A chemical compound that is commonly found in drinks such as beer, wine, and spirits, and is known for its psychoactive effects.

Drugs

Substances used in the diagnosis, treatment, or prevention of diseases, and can also refer to illicit substances abused for recreational purposes.

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