If average variable costs increase as output increases, then
A) total fixed cost must be increasing also.
B) marginal cost must be greater than average variable cost.
C) total cost must be constant.
D) output must be zero.
E) average total cost must be increasing also.
B
Economics
You might also like to view...
Refer to Table 13-4. Victoria's profit-maximizing output is where
A) total profit equals $3. B) marginal revenue and marginal cost both equal $4. C) marginal cost is at its minimum value. D) marginal revenue and marginal cost both equal $3.
Economics
The tendency of markets to automatically gravitate toward equilibrium is an application of the:
A. Scarcity Principle. B. Principle of Comparative Advantage. C. Incentive Principle. D. Cost-Benefit Principle.
Economics