Matching
Carefully explain if the following statements are true,false,or uncertain.
Premises:
Marginal costs decrease as output increases because the firm can spread fixed costs over more units.
If average cost is increasing,marginal cost must be increasing.
If there are diminishing returns,the marginal cost curve must be positively sloped.
Responses:
False
True
Correct Answer:
Premises:
Responses:
Marginal costs decrease as output increases because the firm can spread fixed costs over more units.
If average cost is increasing,marginal cost must be increasing.
If there are diminishing returns,the marginal cost curve must be positively sloped.
Premises:
Marginal costs decrease as output increases because the firm can spread fixed costs over more units.
If average cost is increasing,marginal cost must be increasing.
If there are diminishing returns,the marginal cost curve must be positively sloped.
Responses:
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