Which of the following best illustrates the relationship between the average costs and marginal cost?
A) When marginal cost is greater than average total cost, average total cost is increasing.
B) When average fixed cost is falling, marginal cost must be less than average fixed cost.
C) When marginal cost is less than average total cost, average total cost is increasing.
D) When average variable cost is falling, marginal cost must be greater than average variable cost.
Correct Answer:
Verified
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