Multiple Choice
At 20 units of output, a firm finds that its average variable cost is $5 per unit and its average total cost is $8 per unit.Therefore, its:
A) marginal cost is less than $3 per unit.
B) marginal cost is $3 per unit.
C) average fixed cost is $3 per unit.
D) marginal cost is equal to its average fixed cost.
Correct Answer:
Verified
Correct Answer:
Verified
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