Asked by
Karma Gurung
on Dec 08, 2024
Verified
In the short run, marginal cost is positive and decreasing at output levels where total variable cost is ________ at a(n) ________ rate.
A) increasing; increasing
B) increasing; decreasing
C) decreasing; increasing
D) decreasing; decreasing
Marginal Cost
The expenditure incurred from creating one more unit of a product or service.
Total Variable Cost
The total of expenses that vary directly with the level of production or output.
- Understand the concepts of Marginal Cost (MC), Average Variable Cost (AVC), Average Fixed Cost (AFC), Total Variable Cost (TVC), Total Fixed Cost (TFC), Total Cost (TC), and Average Total Cost (ATC).
- Assess the processes of production that cover increasing returns, diminishing returns, and negative returns, in the scope of the law of diminishing marginal returns.
Verified Answer
AP
Learning Objectives
- Understand the concepts of Marginal Cost (MC), Average Variable Cost (AVC), Average Fixed Cost (AFC), Total Variable Cost (TVC), Total Fixed Cost (TFC), Total Cost (TC), and Average Total Cost (ATC).
- Assess the processes of production that cover increasing returns, diminishing returns, and negative returns, in the scope of the law of diminishing marginal returns.