Asked by
India Love Westbrooks
on Dec 11, 2024Verified
Which of the following must be true if average total costs are rising?
A) Average fixed costs must be rising.
B) Total fixed costs must be rising.
C) Average variable costs must be falling.
D) Marginal costs must be greater than average total costs.
Average Total Costs
The total cost of production divided by the number of units produced, representing the per-unit production cost.
Marginal Costs
The charge for generating one more unit of a product or service.
Average Fixed Costs
The total fixed costs of production divided by the quantity of output produced, indicating how fixed costs change with different levels of production.
- Delve into the effects of output level adjustments on marginal and average costs, and their interrelationships.
Verified Answer
CH
Learning Objectives
- Delve into the effects of output level adjustments on marginal and average costs, and their interrelationships.