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If the Marginal Cost of Adding an Extra Unit of Output

Question 139

Multiple Choice

If the marginal cost of adding an extra unit of output exceeds average total cost,


A) average variable cost must be decreasing as output increases.
B) average fixed cost must be increasing as output increases.
C) average total cost must be increasing as output increases.
D) average total cost must be decreasing as output increases.
E) average fixed cost must be constant.

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