When marginal cost is less than average total cost ______ as output increases.
A) Average total cost must be increasing
B) Average variable cost must be decreasing
C) Average fixed cost must be increasing
D) Average total cost must be decreasing
Correct Answer:
Verified
Q7: Output for a simple production process is
Q18: The vertical distance between the average variable
Q19: The total cost curve
A)Is a horizontal line
B)Increases
Q20: The variable cost of zero units of
Q21: Markets characterized by declining long-run average costs
Q22: Producing an additional unit whose marginal cost
Q24: The vertical distance between the average total
Q25: Geometrically, marginal cost at any level of
Q27: The long-run total cost of zero output
Q28: The total fixed cost function
A)Is horizontal
B)Is U-shaped
C)Is
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