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
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Q37: ATC equals
A)AVC - AFC.
B)FC/Q.
C)(TFC + TVC)/Q.
D)MC +
Q38: At one unit of output AVC is
A)zero.
B)infinite.
C)equal
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