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As a Firm's Production Increases in the Short Run, the Average

Question 18

Multiple Choice

As a firm's production increases in the short run, the average total cost curve eventually slopes upward because


A) marginal physical product eventually declines as output increases.
B) marginal cost eventually declines as output increases.
C) average fixed cost declines with increases in output.
D) average physical product rises with increases in output.

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