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A Total Cost Function of the Form TC = a

Question 126

Multiple Choice

A total cost function of the form TC = a + bQ,with both a > 0 and b > 0,best describes a firm that has


A) small fixed cost and increasing marginal cost.
B) significant fixed cost and increasing marginal cost.
C) small fixed cost and decreasing marginal cost.
D) significant fixed cost and small,constant marginal cost.
E) significant fixed cost and decreasing marginal cost.

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