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The Marginal Cost Is an Important Piece of Information for Firms

Question 115

Multiple Choice

The marginal cost is an important piece of information for firms and economists to know because it


A) determines the size of the plant you should build
B) is the only cost that increases as production increases
C) helps determine precisely which production level maximizes profit
D) incorporates fixed costs into the production decision
E) is a measure of labor productivity

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