When the Output Elasticity of Total Cost Is Less Than

Multiple Choice

When the output elasticity of total cost is less than one,

A) Marginal cost is less than average cost and average cost decreases as Q increases.
B) Marginal cost is less than average cost and average cost increases as Q increases.
C) Marginal cost is greater than average cost and average cost decreases as Q increases.
D) Marginal cost is greater than average cost and average cost increases as Q increases.