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The Below Figure Shows the Various Combinations of the Goods

Question 16

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The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3
The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3    -If the total cost of producing 2 pounds of cheese is $6 and the total cost of producing 4 pounds of cheese is $8, then: A) marginal cost of producing cheese declines as output increases. B) average total cost of producing cheese declines as output increases. C) average total cost of producing cheese increases as output increases. D) average total cost remains constant irrespective of the change in output. E) marginal cost remains constant irrespective of the change in output.
-If the total cost of producing 2 pounds of cheese is $6 and the total cost of producing 4 pounds of cheese is $8, then:


A) marginal cost of producing cheese declines as output increases.
B) average total cost of producing cheese declines as output increases.
C) average total cost of producing cheese increases as output increases.
D) average total cost remains constant irrespective of the change in output.
E) marginal cost remains constant irrespective of the change in output.

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