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If Marginal Cost Is Greater Than Average Variable Cost but Less

Question 139

Multiple Choice

If marginal cost is greater than average variable cost but less than average total cost, then as one more unit of output is produced you should expect average variable cost:


A) and average total cost to both increase.
B) and average total cost to both decrease.
C) to increase and average total cost to decrease.
D) to decrease and average total cost to increase.

Correct Answer:

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