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If Marginal Cost Is Rising in a Competitive Firm's Short-Run

Question 21

Multiple Choice

If marginal cost is rising in a competitive firm's short-run production process and its average variable cost is falling as output is increased, then


A) marginal cost is above average variable cost.
B) marginal cost is below average fixed cost.
C) marginal cost is below average variable cost.
D) average fixed cost is constant.

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