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Suppose the Marginal Cost Curve in the Short Run First

Question 27

Multiple Choice

Suppose the marginal cost curve in the short run first decreases and then increases.If marginal cost is decreasing,_____ must be _____ and _____ must be _____.


A) marginal product;increasing;average fixed cost;zero
B) average variable cost;decreasing;average fixed cost;increasing
C) average total cost;increasing;marginal cost;decreasing
D) marginal product;increasing;average variable cost;decreasing

Correct Answer:

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