Cost Complementarity Exists in a Multiproduct Cost Function When

Multiple Choice

Cost complementarity exists in a multiproduct cost function when:

A) the average cost of producing one output is reduced when the output of another product is increased.
B) the average cost of producing one output is increased when the output of another product is increased.
C) the marginal cost of producing one output is increased when the output of another product is decreased.
D) the marginal cost of producing one output is reduced when the output of another product is increased.