Multiple Choice
Tony's Taco Truck has an average variable cost of $1.50 and a marginal cost of $2 when it produces 50 units of output (tacos) . We can conclude that the average variable cost of producing 51 tacos is
A) higher than $1.50.
B) lower than $1.50.
C) equal to $1.50.
D) either higher or lower than $1.50 depending on the direction of the marginal cost curve.
Correct Answer:

Verified
Correct Answer:
Verified
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